Akshata Sharma
Share
Adani Group-owned Ambuja Cements has signed a binding agreement for the acquisition of Penna Cement Industries (PCIL) at an enterprise value of Rs 10,422 crore.
Ambuja will acquire 100% shares of PCIL from its existing promoter group, P. Pratap Reddy and family.
The acquisition will be fully funded through internal accruals. The acquisition will improve its market share pan India by approximately 2% and in south India by about 8%.
The Penna Cements acquisition, announced on Thursday, will set the Adani Group back by ₹10,422 crore. The cement maker said that the transaction would be fully funded through internal accruals.
As part of the transaction, Ambuja Cement will acquire a cement capacity of 14 million tonne per annum and an under construction 4.0 MTPA cement capacity at Jodhpur IU and Krishnapatnam GU to be completed by Penna Cement.
"Cost to complete the same is part of enterprise value," Adani Cement said while announcing the acquisition.
Penna Cement's purchase will help pave Ambuja Cements' path to 140 MPTA production by 2028, with the company's operational capacity now at 89 MTPA, after the addition of Penna.
--Advertisement--
