Adani Group’s company Ambuja Cements has entered into a definitive agreement to acquire Orient Cement Ltd for Rs 8,100 crore. Ambuja Cements will acquire a 46.8% stake in Orient Cement from its existing promoters and select public shareholders. The acquisition will be entirely financed through internal accruals. The acquisition will contribute to Ambuja Cements’ vision of reaching 140 MTPA capacity by 2028, said the company.

“This timed acquisition marks another significant step forward in Ambuja Cements’ accelerated growth journey, increasing cement capacity by ~30 MTPA within two years of Ambuja’s acquisition,” said Karan Adani, Director of Ambuja Cements on the deal. “By acquiring OCL, Ambuja is poised to reach 100 MTPA cement capacity in FY 25,” remarked Karan Adani. He emphasised that the acquisition will help to expand Adani Cements presence in core markets.

CK Birla, Chairman of Orient Cement said, “The CK Birla Group is continuously reallocating capital to sharpen its focus on consumer centric, technology driven and service-based businesses. I take pride in Orient Cement’s impressive track record of building premium brands and maintaining a leading market share in the geographies it operates in.” Birla further said, “We are confident that the Adani Group, with its strong focus on cement and infrastructure, is the ideal new owner to drive continued growth at Orient Cement for our people and stakeholders.”

Adani Group & Orient Cement Deal: Key Takeaways

• Ambuja Cements to acquire 4% shares of Orient Cement. The transaction has triggered an open offer of 26% to acquire shares from Public Shareholders.
• The transaction has been finalised at an Equity Value of Rs 395.40 per share.
• This transaction will be fully funded through internal accruals.
• This will bring Adani Cement operational capacity to 97.4 MTPA.
• Orient Cement is almost debt free.