On December 22, ACC and Orient Cement announced that their boards have approved merger plans with Ambuja Cements, along with the respective share swap ratios. The mergers are subject to regulatory and statutory approvals, including the National Company Law Tribunal (NCLT).
Merger Overview
Ambuja Cements stated that the mergers will create a Pan-India Cement Powerhouse, aiming to optimize manufacturing and logistics networks, streamline corporate structures, strengthen balance sheets, and enhance capital allocation to support growth and market leadership. Operational synergies are expected to improve margins by at least Rs 100 per metric tonne (PMT).
Share Swap Ratios
- ACC-Ambuja Merger: Eligible ACC shareholders will receive 328 Ambuja Cements shares for every 100 ACC shares.
- Example: An ACC shareholder with 100 shares worth Rs 17,825 at previous closing price will receive 328 Ambuja shares worth Rs 17,7104 at previous closing price.
- Orient-Ambuja Merger: Eligible Orient Cement shareholders will receive 33 Ambuja Cements shares for every 100 Orient shares.
- Example: An Orient shareholder with 100 shares worth Rs 16,352 at previous closing price will receive 33 Ambuja shares worth Rs 17,818.35 at previous closing price.
The record dates for both mergers are yet to be announced. Ambuja stated that the consideration will be discharged on an ‘arm’s length’ basis, and existing brands will continue to operate as usual depending on their respective market segments.
The mergers are expected to be completed within 12 months, subject to approvals from shareholders, creditors, SEBI, NCLT, and other regulatory authorities.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should consult a professional financial advisor before making any investment decisions.
