Ambuja Cements board on December 17 approved merger of Sanghi Industries and Penna Cement Industries with itself.
"The Schemes are subject to necessary statutory and regulatory approvals under the applicable laws, including approval of the jurisdictional National Company Law Tribunal," said Ambuja Cements in a stock exchange filing.
As part of the latest deal, Ambuja Cements will issue 12 equity shares of the face value of Rs 2 each for every 100 shares of Sanghi Industries of face value of Rs 10 held by its shareholders. With this, the eligible shareholders of Sanghi will become the shareholders of Ambuja Cements.
Adani Group-backed Ambuja Cements had in December 2023 said it has completed the acquisition of Sanghi Industries Limited at an enterprise value of Rs 5,185 crore.
As part of the deal's completion, Ambuja Cements also executed a trade (in on and off-market trade) to acquire 54.51 per cent of the voting share capital from the promoters of Sanghi Industries. The company said the acquisition of shares was fully funded through internal accruals.
The trade, the company said, was at a price of Rs 121.90 per equity share, and is higher than the earlier approved Rs 114.22 per share price.
"As both the companies are under the same line of business, this amalgamation will enable the Transferee Company (Ambuja Cements) to absorb the business of Transferor Company (Sanghi Industries) completely for carrying on more effectively and beneficial. The Scheme will enable the Transferee Company to integrate the Transferor Company's operations, leading to more efficient and economical business management. This includes better resource utilisation, reduced overheads, cost savings, economies of scale, elimination of duplicated efforts, and streamlined compliance requirements through amalgamation," said Ambuja Cements in a stock exchange filing.
In June, Ambuja Cements said it will acquire 100% stake in Penna Cement Industries Ltd (PCIL) for an enterprise value of Rs 10,422 crore.
"The Company is amongst the leading cement companies in India, renowned for its hassle-free, home-building solutions with its unique sustainable development projects and environment-friendly practices since it started its operations," said Ambuja Cements.
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