Adani assigns son Karan to lead cement companies and invests 20,000 crore in Ambuja Cement
The son of billionaire Gautam Adani will be in charge of the cement companies his organisation has acquired to become the second-largest cement player in India and grow his expanding empire that includes ports, energy, airports, and telecom.
Adani Group revealed in a press release that it had successfully acquired Ambuja Cements and ACC for a total of $6.5 billion. This covers the acquisition of the two firms’ respective stakes from Swiss multinational Holcim as well as follow-up open offers to minority shareholders.
Shortly after Adani’s acquisition, the two cement businesses announced the resignation of their boards of directors, which included the CEOs and CFOs.
Ambuja Cements is now under the direction of Gautam Adani, the company’s founder and current chairman. He appointed his son Karan, who presently oversees the group’s ports division, to the position of chairman of ACC Ltd. And director of both cement companies.
Karan, 35, a Purdue University economics graduate, has been in charge of Adani Ports and SEZ Ltd., which has expanded from two ports to a chain of ten ports and terminals.
Ambuja Cements’ new board approved a 20,000 crore investment in the business through the preferential grant of warrants to “enable the company to seize the growth in the industry.” Adani made its largest acquisition to date and the largest buyout in the nation’s infrastructure and materials sector when it acquired the two cement firms.
The Adani group stated in May of this year that it had reached an agreement to buy the Indian operations of Holcim Ltd. And that it had made a second offer to the public shareholders to buy a 26% stake in both firms.
The deal’s initial value was projected to be around $10.5 billion (81,360 crores), including 31,000 crores from the open offer.
Investors had a muted response to the open offer, which closed on September 10. Only 8.28% of the targeted shares in ACC Ltd. Could be purchased, and only 1.35% of the shares in Ambuja Cements were tendered.