The Life Insurance Corporation (LIC) of India, the largest institutional shareholder in the Associated Cement Companies (ACC) Ltd has decided to tender a five per cent stake in the open offer of Holcim Ltd. LIC had a 15.72 per cent stake in ACC as on December 31, 2004. The offer price for ACC is Rs 370 per share. LIC holds 2.81 crore shares in ACC’s equity of 17.84 crore shares. LIC’s decision to tender 5 per cent stake in ACC comes to 14.03 lakh shares and at the rate of Rs 370 per share, LIC will rake in Rs 51.90 crore. The Holcim offer for ACC shareholders opened on March 24 and will close on April 11.
Confirming the move, a top LIC official told Financial Express, "our investment committee has met over the issue and decided to offer five per cent." According to LIC sources, the institution had acquired stake in ACC at a much lower price and would get a better return at Rs 370. "The rest of our holding in ACC will be for long-term investment," said the LIC official. The ACC stock gained 0.57 per cent on The Stock Exchange, Mumbai (BSE) to close at Rs 363.60, where 2.16 lakh shares changed hands on Wednesday.