Ahmedabad (Gujarat) [India], The acquisition of Penna Cement will expand Ambuja Cements' presence in India, particularly in South India, while also opening up markets in neighboring Sri Lanka, the Adani Group cement company said on the rationale behind the acquisition. Said in a presentation explaining. ,
On Thursday, Ambuja Cements announced that it has decided to acquire 100 per cent shares of Penna Cement Industries Limited. Penna Cement will now become a wholly owned subsidiary of Ambuja Cements.
The enterprise value of the transaction is Rs 10,422 crore. The cement maker said the transaction will be funded entirely from internal accruals.
The transaction involves the acquisition of 14.0 million tonnes per annum cement capacity. The 4.0 MTPA cement capacity under construction at Jodhpur IU and Krishnapatnam GU will be fulfilled by the seller.
“The cost of completing this is part of the enterprise value,” Adani Cement said.
This acquisition will help Ambuja Cements accelerate its journey to 140 million production by 2028.
With the acquisition of Penna, Adani Cement's operating capacity now stands at 89 MTPA. The remaining 4 parapet manufacturing capacity will be commissioned within 12 months.
PCIL has 14 MTPA cement capacity, of which 10 MTPA (million tonnes per annum) is operational, and the remaining is under construction at Krishnapatnam (2 MTPA) and Jodhpur (2 MTPA) and will be completed within 6 to 12 months.
On Thursday, Ambuja Cements announced that it has decided to acquire 100 per cent shares of Penna Cement Industries Limited. Penna Cement will now become a wholly owned subsidiary of Ambuja Cements.
The enterprise value of the transaction is Rs 10,422 crore. The cement maker said the transaction will be funded entirely from internal accruals.
The transaction involves the acquisition of 14.0 million tonnes per annum cement capacity. The 4.0 MTPA cement capacity under construction at Jodhpur IU and Krishnapatnam GU will be fulfilled by the seller.
“The cost of completing this is part of the enterprise value,” Adani Cement said.
This acquisition will help Ambuja Cements accelerate its journey to 140 million production by 2028.
With the acquisition of Penna, Adani Cement's operating capacity now stands at 89 MTPA. The remaining 4 parapet manufacturing capacity will be commissioned within 12 months.
PCIL has 14 MTPA cement capacity, of which 10 MTPA (million tonnes per annum) is operational, and the remaining is under construction at Krishnapatnam (2 MTPA) and Jodhpur (2 MTPA) and will be completed within 6 to 12 months.
