Ambuja Cements agrees to hold a 50% share in ACC as collateral for loans

Ambuja Cements, now controlled by the Adani Group headed by billionaire Gautam Adani, announced on Wednesday that it had pledged a 50.5% stake in its subsidiary ACC Ltd as “guarantee for loans taken out by the company”. The company pledged its total 9.39 crore shares of ACC Ltd on September 26, 2022, according to a regulatory filing from Ambuja Cements.

Adani acquired the two companies – Ambuja and ACC – through a Mauritius-based SPV Endeavor Trade and Investment Ltd (ETIL), which is owned by Xcent Trade and Investment Ltd (XTIL). “The shares of Endeavor Trade and Investment Ltd, Xcent Trade and Investment Ltd and Holderind Investments will also be charged for these loans,” he added.

Adani Group last week said it had pledged its entire $13 billion stake in Ambuja Cements and ACC, days after completing its acquisition of the two companies for $6.5 billion. Adani Group encumbered its 63.15% stake in Ambuja Cements and its 56.7% stake in ACC (50% of which is held by Ambuja) to the Hong Kong branch of Deutsche Bank AG.

Shares of Ambuja Cements closed at Rs 500.20 apiece on BSE on Wednesday and shares of ACC Ltd settled at Rs 2,350.90. On September 16, Adani Group announced the completion of the acquisition of Ambuja Cements and ACC for $6.5 billion, which includes the purchase of Swiss major Holcim’s stake in both companies and subsequent open offers. to minority shareholders.

Speaking to shareholders after the deal was struck, Gautam Adani said his group plans to double its cement manufacturing capacity and become the country’s most profitable manufacturer. It has seen a multiple increase in demand for cement in India thanks to record economic growth and the government’s infrastructure building push, which will yield significant expansion in margins.

In a speech at an event marking the completion of the acquisition on September 17, the founder and chairman of the Adani Group said the ports-to-energy conglomerate had suddenly become the second largest manufacturer. of cement in the country. On Tuesday, Adani Group chairman said he would invest $100 billion over the next decade, mostly in new energy and digital spaces including data centers, as the group is betting big on the growth of the India.

Up to 70% of this investment will be devoted to the energy transition, Adani said while continuing to reveal the group’s new energy plans little by little.

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