Holcim consolidates stake in Ambuja Cements to 46 pc

Holcim consolidates stake in Ambuja Cements to 46 pc
Published: 05 December 2007

Holcim Ltd, world’s second largest cement-maker, today said it has increased its stake in Ambuja Cements by 13 per cent to 46 per cent for US$780m (Rs 3,075 crore) through an open offer.

Holcim increased its stake in the domestic cement maker by 13 per cent since August and now owns 46 per cent in it, the company said in a statement.

It has raised the stake through acquisition of a block of shares from the funding families, the related mandatory offer and open market purchases.

The shareholders of Ambuja Cements have tendered in just 5 per cent stake to the Holcim in the open offer.
The entire investment by Holcim has been financed through internal resources and existing credit facilities, the statement said.

On August 23, the Swiss cement-maker had made an open offer to buy 20 per cent in Ambuja Cements for over Rs 4,720 crore, pursuant to the acquisition of a 3.9 per cent stake in the domestic firm. Following the acquisition, the stake of Holcim in Ambuja stood at 32.3 per cent.

With the purchase of another block of shares, Holcim exceeded the acquisition limit of five per cent in a fiscal year as prescribed by takeover norms of the country and was required to make the open offer.