 "ACC, Asian concretes and cements Pvt Ltd")
Adani Group-owned ACC Ltd on Monday announced that it will acquire the remaining 55 per cent stake in the cement manufacturer Asian Concretes and Cements Pvt Ltd (ACCPL) at an enterprise value of Rs 775 crore. It currently owns 45 per cent of the company. The acquisition will be funded through internal accruals.
The cost of acquisition will be Rs 425.96 crore for 55 per cent equity.
ACCPL has a 1.3 MTPA cement capacity in Nalagarh, Himachal Pradesh, while its subsidiary Asian Fine Cements Pvt Limited (AFCPL) has a 1.5 MTPA cement capacity in Rajpura, Punjab.
"With this acquisition, we are furthering our growth trajectory, enriching our portfolio, and continuing to accelerate our journey towards value creation for all our stakeholders," said Ajay Kapur, chief executive officer at ACC Ltd.
"This strategic move enhances ACC's cement capacity and progress on the overall target of 140 MTPA capacity of Adani's Cement Business by 2028," the company said. The acquisition will be completed in the next seven days.
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It added that While ACC has an existing tolling arrangement with the Nalagarh unit, the Rajpura plant's additional 1.5 MTPA capacity will strategically cater to a vast customer base across three states – Himachal Pradesh, Haryana, and Punjab. Notably, ACC and Ambuja Cements possess sufficient clinker to support the Rajpura plant, including its future expansions.
"This aligns seamlessly with our vision for expansion and serves as a testament to 'ACC's Bharosa Atoot', resonating deeply with our values," said Kapur.
As of 11 am, the shares of ACC were trading 1.49 per cent in the red at Rs 2,341.9 apiece.
