Holcim picks up 3.9 per cent stake in Ambuja Cements, India

Holcim picks up 3.9 per cent stake in  Ambuja Cements, India
Published: 24 September 2007

Holcim today consolidated its holdings in  Ambuja Cements to 36.2 per cent after picking up 3.9 per cent stake in the domestic firm for Rs 924 crore in open market transactions.  

Holcim’s subsidiary Holdering Investments bought six crore equity shares, representing 3.9 per cent stake,
of  Ambuja Cements at a price of Rs 154 each in a block deal at the Bombay Stock Exchange.  

Holcim bought the shares from two promoter group firms of  Ambuja Cements -- Radha Madhav Investments Ltd and RKBK Fiscal Services Pvt Ltd. Radha Madhav Investments Ltd sold 3.90 crore shares, while RKBK offloaded 2.10 crore shares.  

Last month, the company had said a letter of agreement had been entered into by its four promoters –
Narottam S Sekhsaria, RMIL, RKBK and Holderind Investments for sale of a 3.9 per cent stake to Holcim
Mauritius.  

The letter provided that Holcim Mauritius would acquire six crore shares of Ambuja Cements at Rs 154
per share, subject to requisite approval from the Reserve Bank.  

Pursuant to the acquisition of a 3.9 per cent stake in the domestic firm, the swiss cement maker will make an
open offer to buy an additional 20 per cent in  Ambuja Cements for over Rs 4,720 crore.  Holcim is obliged to make an open offer as it has bought more than five per cent stake in a year in the company.  

Holcim Mauritius has made the open offer to shareholders of  Ambuja Cements for buying over 30.65
crore shares or 20 per cent stake in the company at Rs 154 per share, the domestic cement maker said in a
filing on Bombay Stock Exchange. The proposed price of the open offer, which would conclude by the end of this November, represents a premium of around 20 per cent over the average price of the scrip on National Stock Exchange in the last two weeks.  

Assuming full acceptance of the 20 per cent open offer, the shareholding of the  Holcim group in  Ambuja Cements would increase to around 56 per cent. 

There would be no change of control of  Ambuja Cements following the acquisition of stake and RMIL and RKBK would continue to be entitled to nominate two non-retiring, non-executive directors on its board. Suresh Neotia would continue as chairman and Narotam S Sekhsaria as vice-chairman on the board of directors, the company had said.