Ambuja Cements announced it will merge with ACC and Orient Cement, offering clear benefits to shareholders and aiming to cut costs across the business.
Deal Overview
The boards of ACC and Orient Cement approved the merger with Ambuja Cements. Once completed, the combined entity will become a pan‑India cement leader with a stronger balance sheet, streamlined operations, and better capital use.
Share‑Swap Details
ACC Shareholders
- Swap ratio: 328 Ambuja shares for every 100 ACC shares.
- Example: Holding 100 ACC shares (worth about ₹1,78,250) will give you 328 Ambuja shares (worth roughly ₹1,77,104 based on the last closing price of ₹539.95).
Orient Cement Shareholders
- Swap ratio: 33 Ambuja shares for every 100 Orient shares.
- Example: Holding 100 Orient shares (worth about ₹1,63,520) will give you 33 Ambuja shares (worth roughly ₹1,78,183 based on the same closing price).
The exact record dates for both swaps have not been announced yet. These dates will decide who is eligible to receive the new shares.
Expected Benefits
- Cost reduction of at least ₹100 per tonne of cement production.
- Improved profit margins and stronger cash flow.
- Simplified branding and sales promotion expenses.
- Better use of manufacturing and logistics networks.
Timeline and Approvals
The merger will need approvals from shareholders, creditors, SEBI, the National Company Law Tribunal (NCLT), and other regulators. Ambuja expects the whole process to be completed within twelve months.
Disclaimer
Remember, this is perspective, not prediction. Do your own research and consider your risk tolerance before making any investment decisions.