ACC acquires 55% stake in Asian Concretes and Cements

Arushi Mishra Updated - January 08, 2024 at 11:49 AM.

The remaining 45 per cent stake in ACCPL was acquired from its existing promoter, resulting in ACC’s complete ownership of ACCPL

ACC Limited, a subsidiary of Ambuja Cements Limited, acquired a 55 per cent stake in Asian Concretes and Cements Private Limited (ACCPL). The enterprise value of the acquisition stands at ₹775 crore, fully funded through internal accruals. The remaining 45 per cent stake in ACCPL was acquired from its existing promoter, resulting in ACC’s complete ownership of ACCPL.

ACCPL, along with its subsidiary Asian Fine Cements Private Limited (AFCPL), contributes to a total cement capacity of 2.8 MTPA. This move increases ACC’s cement capacity to 38.55 MTPA. Together with its parent company Ambuja, the overall cement capacity reaches 76.10 MPTA.

The acquisition is deemed value accretive as it balances Adani Cement’s clinker facilities in North India. ACCPL, with a cash and cash equivalent of ₹35 crore, operates with a cement capacity of 1.3 MTPA in Nalagarh (Himachal Pradesh), while AFCPL has a capacity of 1.5 MTPA in Rajpura (Punjab).

Ajay Kapur, WTD and CEO, ACC, said, “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. This aligns seamlessly with our vision for expansion and serves as a testament to ‘ACC’s Bharosa Atoot’, resonating deeply with our values.”

However, the shares were down by 1.13 per cent to ₹2,350.45 at 11:48 am on the BSE.

Published on January 8, 2024 06:07

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