merges and acquisitions

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corporate restructuring

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merges and acquisitions

  1. 1. Merges and Acquisitions:- Ambuja cement Rajastan TO Gajarat Ambuja cement ltd.
  2. 2. Gujarat ambuja cement ltd. Profile:-TYPE PRIVATE LIMITED COMPANYTRADED BSE- 500425 , NSE- AMBUJGUJINDUSTRY CEMENTFOUNDED Mr.N.P.GHUWALEWALAHEAD QUATERS MUMBAIAREA SERVED INDIAPRODUCTS CEMENTREVENUE 7640.38 CRTOTAL ASSETS 7395.13 CR
  3. 3. Ambuja cement Rajasthan ltd. profile:-TYPE PRIVATE LIMIRED COMPANYTRADED BSE- 500122, NSE- AMBUJARAJNINDUSTRY CEMENTFOUNDED RAJIV SINGH, T.C. GOYALHEAD QUARTERS RAJASTANAREA SERVED INDIAPRODUCTS CEMENTREVENUE 247.78 CRTOTAL ASSETS 389.59 CR
  4. 4. DETAILS OF MERGES AND ACQUISITIONS:-• Acquiring company : Gujarat ambuja cement ltd• Acquired company :Ambuja cement Rajasthan ltd• Merger type: Horizontal merger• Takeover type: Friendly takeover• Synergies: financial synergy
  5. 5. Ambuja cement Rajasthan as a sick company:-• India is the 4th largest producer of cement in the world after China, Japan, USA.• The company is being set up in the state Rajasthan ie., northern part of the country.• The annual capacity was 17.77 million tons, production capacity utilization is 83%.• The cash flow of the company has been adversely affected due to low margin, higher cost of production, high distribution charges and also high financial charges.
  6. 6. Ambuja cement Rajasthan as a sick company:-• 1,09,01,920 debentures under option iii were converted into 3,81,56,720 equity shares of Rs 10 each.• The company proposes to make a preference allotment of 500 lakh equity shares of rs 10 each in private placement basis to Gujarat ambuja cement ltd.
  7. 7. Process of acquisition:-• Gujarat ambuja cement ltd has agreed to join existing management for revival of the company.• GACL is a leading cement company in the country.• GACL has acquired 3,10,00,000 number of equity shares of rs10 each for cash at par allotted to it.• BIFR has approved merger of ambuja cement Rajasthan in to Gujarat ambuja cement ltd.
  8. 8. Brief report:-• Merger of ambuja cement Rajasthan ltd in to Gujarat ambuja cement ltd has resulted in synergy effect.• Now they have launched their product with a brand name as Ambuja cement .

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