Adani’s Ambuja-ACC is frontrunner to acquire Sanghi Cements

economictimes.indiatimes.com:

Adani group’s Ambuja-ACC has emerged the frontrunner to acquire Sanghi Cements after deal negotiations moved forward over the course of the past one week and the Adani group companies proposed better acquisition terms, according to people aware of the matter. Ambuja-ACC and JK Lakshmi Cement are leading the race to acquire Ahmedabad-based Sanghi Cement, ET had first reported on 25 July. As per sources aware of the matter, Adani group has come close to the expected enterprise value of Rs.

6000 crore that Sanghi Cement’s promoters have demanded as consideration for the sale of the company. JK Lakshmi Cement is also in the running but has not matched the enterprise value demanded. The enterprise value includes debt of around Rs.

2000 crore. “Negotiations are ongoing and team from both sides could formalize an arrangement very quickly. There are just a couple of issues that need to be ironed out”, a person briefed on the matter said.

Sanghi Cement is controlled by the family of Ravi Sanghi who are the promoters of the listed Sanghi Industries. Sanghi Industries’s shares hit a 52 week high of Rs. 100.40 on Wednesday giving the company a market capitalization of nearly Rs.

2600 crore. Adani group could not be reached for comment. “No comments on speculation”, an Adani spokesperson told ET last week when contacted for the group’s comments on their interest in acquiring Sanghi Cement.