Adani’s Ambuja-ACC reaches agreement to buy Sanghi Cements
Adani group’s Ambuja-ACC has reached an agreement 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 and speedy deal closure, 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. The enterprise value includes debt of around Rs. 2000 crore.
“The deal has been signed and an announcement is expected shortly", a person briefed on the deal negotiations between the two companies 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. Ambuja-ACC, JK Laksmi Cement and UltraTech are the top 3 cement players in Gujarat from where Sanghi Cement also derives a bulk of its revenues.
Adani group did not respond to queries. “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. Sanghi Cement declined to comment.
Delhi-based JK Lakshmi Cement was also in the running but was unable to match the enterprise value demanded. Moreover, it sought nearly three months time to complete due diligence on Sanghi Cements, which became a deal breaker. The company had also arranged credit facilities from European banks to
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