Orient promoter CK Birla taps Adani for cement business sale
CK Birla has approached Gautam Adani to sell his promoter stake in listed Orient Cement after rejecting initial offers from other domestic players for failing to meet his valuation demand, people aware of the talks told ET. Senior management executives on both sides have also met to discuss a potential deal for the Adanis, who already own India's second largest cement capacity.
Earlier this summer, JP Morgan was roped in by Birla to find a buyer for his business.
The promoter stake in Orient Cement — held by the Birla family and private investment vehicles — is 37.9%, with a current market value of ₹3,878 crore.
The stock has seen a 29% spurt in past three months in anticipation of a sale. The transition will trigger an open offer for an additional 26% stake in accordance with takeover laws, which mandate an incoming promoter or controlling entity to buy the additional shares from existing minority investors.
«I have nothing to contribute to your story as I am unaware of what you are talking about,» said Deepak Khetrapal, MD, Orient Cement.
Formal talks in past few months
«As the MD of the company, my job is to run the company and I talk about the performance of the company,» he said.
Mails sent to Adani Cement on Saturday remained unanswered until the publication of this report.
In January, both companies denied to the stock exchange that they were in discussions after Informist first reported about the developments.
Sources said formal talks have taken place only in the past few months. However, there is no guarantee that the Adani discussions will culminate in a transaction, the sources mentioned above warned.
Sanghi buyout
This August, Adani trumped competition from Nuvoco, JK Lakshmi and market leader
