Swiss Cement giant Holcim has found a buyer for the Associated Cement Companies' 76.1 per cent stake in Everest Industries Limited. The Rs 7,000 crore (Rs 70 billion) Adani group has signed an agreement with Holcim to take over Everest.
Holcim had on Thursday entered into a deal to acquire control of ACC.
Adani group spokesperson Devang Desai confirmed that Accurate Finstock Private Limited, an Adani group company, signed the deal with Holcim in the past two days.
Everest, which has cement manufacturing plants in Maharashtra, West Bengal and Tamil Nadu, had reported a turnover of Rs 148 crore (Rs 1.48 billion) in financial year 2003-04.
Holcim has agreed to propose to the board of directors of ACC to divest the 76.01 per cent stake in Everest (formerly Eternit Everest Limited) to AFPL at a fair value to be agreed between ACC and AFPL.
The Adani group is confident of acquiring control of Everest and is of the view that the move will be in sync with its existing businesses.
The proposed acquisition is based not only on the favourable business model and financial performance of Everest, but also on the fact that Everest has an efficient management.
As per the requirements of the takeover, AFPL and Adani Port Infrastructure Limited shall make an open offer to acquire 20 per cent of the outstanding equity share of Everest. The Adani group has appointed merchant bankers Enam to make the offer.
Desai said the Adani group was satisfied with Everest's performance and would retain the company's name after the takeover.
The Adani group of companies represents a diverse business conglomerate. Its activities range from trading to infrastructure development. Its flagship company, Adani Exports Limited, is the only company to be accorded Five Star Export House status in India.
In the infrastructure sector, the Adani Group has contributed by developing the Mundra Port.
