Adani group's Ambuja-ACC, JK Lakshmi lead race to acquire Sanghi Cement

economictimes.indiatimes.com:

Ambuja-ACC and JK Lakshmi Cement are ahead in the race to acquire Ahmedabad-based Sanghi Cement which is being sold for an estimated enterprise value of Rs 6,000 crore, people familiar with the matter said. The two frontrunners are expected to start due diligence on the company soon and, if it is satisfactory, place formal offers over the next two months, they said.Shree Cement, Nirma Group and Dalmia Bharat had also submitted proposals to acquire a controlling stake in Sanghi Cement company, but are no longer in the running, the people said. Sanghi Cement is controlled by the family of Ravi Sanghi, promoters of Sanghi Industries.

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Sanghi Industries' shares hit a 52-week high of Rs 93.35 on the BSE on Monday, giving the company a market capitalisation of around Rs 2,400 crore. The company's shares have rallied 26% in the past one month. «No comments on market speculation,» an Adani group spokesperson said in response to ET's queries. JK Lakshmi Cement and Sanghi Cement declined to comment. Dalmia and Nirma group also declined to comment. Shree Cement confirmed it has dropped out of the race to acquire Sanghi Cement. Ambuja-ACC, JK Lakshmi Cement and UltraTech are the top three cement players in Gujarat from where Sanghi Cement derives the bulk of its revenues.

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«It's a very strong strategic fit for Ambuja-ACC,» a person briefed about discussions on the transaction remarked. The Adani family had acquired Ambuja-ACC from Switzerland's Holcim in May last year in a $10.5-billion deal, including the cost of open offers. ET had first