Holcim Ltd (Switzerland) has increased its stake in Ambuja Cements to 50.0% by buying depository receipts representing 3.56% stake in the company from the open market, according to a notification on the Bombay Stock Exchange.
The transaction was carried out on April 29 by Holpac Ltd, acting in concert for Holcim Ltd, Holdring Investments Ltd, Holcim Particiapations (Mauritius) Ltd, Ambuja Cement India Pvt Ltd, Holcim (India) Pvt Ltd and Holderfin B.V. Holcim now holds 45.44% in Ambuja Cements through shares and 4.56% through depository receipts.
The acquisition suggests that Holcim may look to de-list Ambuja Cements from stock exchanges in the long term, according to analysts quoted by NewsWire. The limit for a creeping acquisition is 5% in each year, therefore Holcim can increase its state in Ambuja Cements to 55% in 2012. Holcim group also holds around 48% stake in Indian cement giant ACC Ltd.