adithya
Core Member
Cement makers ACC and Ambuja Cements surged 6-10 percent respectively intraday Monday on the back of possible merger of the companies.
ACC and Ambuja Cements in their respective board meeting have decided to commence an evaluation of a potential merger of both companies with a view to combine the strengths of both businesses so as to benefit all stakeholders.
A special committee of independent directors has been constituted to consider the matter further.
“No decision to merge has been taken at this stage and the same will be considered by the board once a recommendation is received from the special committee of directors and the audit committee,” said by companies in their press release.
As on March 31, 2017, Ambuja Cement hold 50.05 percent and Holderind Investments hold 4.48 percent stake in ACC.
In an interview to CNBC-TV18, Rakesh Arora, Managing Partner at Go India Advisors said that ACC-Ambuja Cements merger is positive for shareholders. He expects some rerating in ACC and Ambuja in the next few years.
ACC and Ambuja will bridge some part of the valuation gap with UltraTech Cement, said Arora.
The global brokerage firm JPMorgan believes that the merger consideration between both the companies was a significant positive and one can expect an announcement in 12-18 months.
"The merger would further simplify the holding structure for the parent and would also pave way for realisation of sizeable cost synergies for the combined entity. These synergies may yield margin accretion of 300-400 basis points," it added.
CLSA has upgraded Ambuja Cements to buy from sell rating with a revised target of Rs 311 and also upgraded ACC to outperform from sell for a revised target of Rs 1,925.
CLSA believes that ACC should merge into Ambuja. Further, it said that it cannot moderate synergies at this stage, but raised estimates for both the companies by 5-11 percent.
At 10:58 hrs Ambuja Cements was quoting at Rs 268.85, up 9.16 percent and ACC was quoting at Rs 1,735, up 4.81 percent, touched a 52-week high of Rs 1,753.85.
Source:-
ACC, Ambuja Cements flare up 6-10% on possible merger - Moneycontrol.com
Ambuja Cements, ACC scrips strengthen as merger talks begin | Business Line
ACC, Ambuja Cements Rally On Plans Of A Possible Merger – NDTV Profit
ACC and Ambuja Cements in their respective board meeting have decided to commence an evaluation of a potential merger of both companies with a view to combine the strengths of both businesses so as to benefit all stakeholders.
A special committee of independent directors has been constituted to consider the matter further.
“No decision to merge has been taken at this stage and the same will be considered by the board once a recommendation is received from the special committee of directors and the audit committee,” said by companies in their press release.
As on March 31, 2017, Ambuja Cement hold 50.05 percent and Holderind Investments hold 4.48 percent stake in ACC.
In an interview to CNBC-TV18, Rakesh Arora, Managing Partner at Go India Advisors said that ACC-Ambuja Cements merger is positive for shareholders. He expects some rerating in ACC and Ambuja in the next few years.
ACC and Ambuja will bridge some part of the valuation gap with UltraTech Cement, said Arora.
The global brokerage firm JPMorgan believes that the merger consideration between both the companies was a significant positive and one can expect an announcement in 12-18 months.
"The merger would further simplify the holding structure for the parent and would also pave way for realisation of sizeable cost synergies for the combined entity. These synergies may yield margin accretion of 300-400 basis points," it added.
CLSA has upgraded Ambuja Cements to buy from sell rating with a revised target of Rs 311 and also upgraded ACC to outperform from sell for a revised target of Rs 1,925.
CLSA believes that ACC should merge into Ambuja. Further, it said that it cannot moderate synergies at this stage, but raised estimates for both the companies by 5-11 percent.
At 10:58 hrs Ambuja Cements was quoting at Rs 268.85, up 9.16 percent and ACC was quoting at Rs 1,735, up 4.81 percent, touched a 52-week high of Rs 1,753.85.
Source:-
ACC, Ambuja Cements flare up 6-10% on possible merger - Moneycontrol.com
Ambuja Cements, ACC scrips strengthen as merger talks begin | Business Line
ACC, Ambuja Cements Rally On Plans Of A Possible Merger – NDTV Profit