Holcim acquires additional stake in GACL

Holcim acquires additional stake in GACL
Published: 16 November 2006

Holcim  has reportedly acquired a 3.7 stake per cent in Indian cement maker Gujarat Ambuja Cements Ltd. to add to its existing 15.6 per cent holding, a source close to the deal said on Thursday. 
The Swiss cement maker bought about 50m shares from the founders of Gujarat Ambuja at 138.65 rupees a share, valuing the stake at Rp6.93bn ($153.3m), the source said. 
Holcim could not be immediately reached for comment. 
A subsequent offer by Holcim to buy 20 per cent from minority shareholders received a poor response given the strong outlook for cement stocks as a construction boom underpins strong earnings growth for cement companies. 
For the July-September quarter, Gujarat Ambuja posted a net profit of 2.4 billion rupees, up from 752.8 million rupees a year earlier, on strong cement prices. 
Holcim also holds a stake of about 35 percent in ACC Ltd.