Holcim Ltd has launched a $1.34bn offer to acquire a controlling stake in its Indian partner as an expansion into Asia begins to pay off.
As part of the offer, Zurich-based Holcim said it bought an additional 3.9% of India’s Ambuja Cement Ltd. after picking up a third of the company in 2006. The group said it’s paying rupee 154 ($3.75) per share for the holding and announced a public offer for an additional 20% stake at the same price.
The bid offers shareholders an 18% premium over Wednesday’s close and, if successful, will give Holcim over 56% of India’s second-largest cement group.
“The families will continue to hold a stake in ACL. They will stay closely engaged with Holcim and the company,” Holcim said, noting it planned no board-level changes at the target.