Indian tycoon Gautam Adani has made his first major acquisition since a short seller report rocked his infrastructure empire earlier this year, buying cement company Sanghi Industries in a $600mn deal.
Adani’s Ambuja Cements, which his group bought last year from Switzerland-headquartered Holcim for $10.5bn, is acquiring 57 per cent of the shares in Gujarat-based Sanghi from its existing family owners, with the company valued at Rs50bn ($600mn) after taking into account debt and liquid assets.
An open offer is being launched for a further 26 per cent stake at 114.22 rupees per share, which represents a 14 per cent premium to Sanghi’s closing price on Wednesday. Adani said it was funding the acquisition entirely through its own cash, signalling a break from its previously debt-fuelled acquisition spree.
Read the full story on the Financial Times here.