Ambuja Cements Limited Board Approves Amalgamation of ACC Limited and Orient Cement Limited
Ahmedabad, Dec 22 (BVI) Ambuja Cements Limited, part of the Adani Group, has received approval for two separate Schemes of Amalgamation from its Board of Directors to merge ACC Limited and Orient Cement Limited, establishing a single consolidated ‘One Cement Platform’.
Subject to requisite approvals, the transaction is expected to be completed over next one year, the company said in a statement.
The merger will create a pan-India cement powerhouse
It will deliver operational synergistic benefits by optimising manufacturing and logistics networks, streamlining corporate structure, strengthening balance sheet and facilitating efficient capital allocation to support growth and bolster market leadership, the company said.
The merger will simplify and rationalise the network, branding and sales promotion related spends, it said, adding this will help optimise costs and improve margin by at least Rs. 100 PMT.
The merger will facilitate achieving targeted cost, margin expansion and growth metrics.
For every 100 equity shares of ACC with a face value of Rs. 10/- each, Ambuja will issue 328 equity shares with a face value of Rs. 2/- each, to eligible shareholders of ACC.
For every 100 equity shares of Orient Cement with a face value of Re. 1/- each, Ambuja Cements will issue 33 equity shares with a face value of Rs. 2/- each, to eligible shareholders of Orient Cement. (BVI)
