ACC has sold off its residual 8.2% equity stake in building materials manufacturer, Everest Industries, in the secondary market. The stake sale marks the final exit of ACC, previously a majority equity holder, from the company earlier known as Eternit Everest.
ACC’s stake was put on the block by Holcim when the Swiss cement giant acquired the cement major in India two years back, as it did not want to continue with Everest’s asbestos-based roofing materials business.
It may be recalled ACC had earlier tried to sell its 76% stake in the company to Adanis. Adanis had even announced an open offer to acquire further stake as required by the takeover code but it didn’t materialise. The proposed sell-off to Adanis had raised the hackles of some investors who had raised various issues including the valuation of the company.
Finally, about a year back ACC sold off 50% stake to Eternit Finvest. At that time Eternit Finvest had disclosed that it is managed by Mrinalini Trust, whose ’settler’ or creator was Narottam Sekhsaria of Gujarat Ambuja.
ACC, which has been holding 8.26% stake in the company for the last one year, has now offloaded its remaining equity in the open market. The equity would have fetched about Rs 10-15 crore to ACC given the market price.
Everest Industries is the oldest player in the roofing industry having established its first plant during the British Raj. In late 80s, the company was sold off by UK’s Turner & Newall International to Etex Group of Belgium.
In 2002, ACC acquired Eternit’s 50% stake in the company. However, after Holcim acquired ACC in 2005, it decided to sell its interest in Eternit Everest. The company, which has a turnover of about Rs 250 crore, sells its roofing products under the popular Everest brand while its interior products are sold under E-Board.