Tatva Legal, CAM advise acquisition of Penna Cements by Ambuja Cements

Ambuja Cements Limited has acquired Penna Cement Industries Limited by entering into a binding agreement, setting out the terms and conditions of the Transaction and subsequently a share purchase agreement. The shares of PCIL were purchased for an enterprise value of ₹9,822 crore.

Tatva Legal, Hyderabad has advised Penna Cements and its promoters on this transaction.

The transaction team consisted of P Basava Rao (Partner), Asmita Murali (Manager), Dippyaman Bhattacharya (Senior Associate), Mahek Agarwal (Associate) and Anirudh Krishna (Associate).

Cyril Amarchand Mangaldas advised Ambuja Cements on this acquisition deal. The Firm also advised Ambuja with respect to the provision of an inter-corporate deposit of ₹300 crore to P.R. Cement Holdiings Limited, a group company of Penna Cements. Further, the Firm advised in repayment of loans by Penna Cements and its subsidiaries by subscription of optionally convertible debentures by Ambuja in Penna and its subsidiary Marwar Cement Limited, in two or more tranches.

The transaction team was led by Smruti Shah, Partner; Paridhi Adani, Partner; Anand Jayachandran, Partner; with support from Viraj Gami, Principal Associate; Utkarsh Mankad, Senior Associate-Designate; Arushi Bindal, Associate; and Pauravi Kolhe, Associate.

Lakshmi Prakash, Partner, advised and assisted on certain financing related aspects and documents of the transaction.

Anand Jayachandran, Partner, advised and assisted on corporate related aspects of the legal due diligence;

Abe Abraham, Partner, advised and assisted on employment related aspects of the legal due diligence;

Smruti Shah, Partner, advised and assisted on financing related aspects of the legal due diligence;

Gyanendra Kumar, Partner and Monark Gahlot, Partner, advised and assisted on litigation related aspects of the legal due diligence;

Abhilash Pillai, Partner; Jinal Mehta, Partner; Emil Joseph, Partner; Ashish Jain, Partner, advised and assisted on real estate related aspects of the legal due diligence;

Ramanuj Kumar, Partner; Aniket Singhania, Partner; Nishikant Sao, Partner-Designate, advised and assisted on project related aspects of the legal due diligence;

Smruti Shah, Partner, advised and assisted on insurance and intellectual property related aspects of the legal due diligence.

Penna Cements is one of the largest privately held cement companies in India, and has established itself as one of the most trusted cement brands, with significant footprints in southern and western India.

This strategic acquisition by Ambuja Cements helped them in acquiring 8% of the market in southern India.

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