Holcim to buy 3.9% in Ambuja Cement, eyes another 20%

New Delhi, Aug 23 (UNI) World's second largest cement maker Holcim Mauritius today said it plans to further expand its 32.3 per cent stake in the Ambuja Cements Ltd (ACL) and acquire another 3.9 per cent stake from the promoters at Rs 154 per share.

Holcim will acquire the six crore equity shares constituting 3.94 per cent of the fully paid-up shares from the present holdings of Radha Madhav Investments Ltd (RMIL) and RKBK Fiscal Services Pvt Ltd (RKBK). The purchase is subject to the approval of the Reserve Bank of India, said a statement.

The group also said it will launch a public takeover offer for another 20 per cent of the share capital at a price of Rs 154 per share amounting to around 1.12 billion dollars and expects the deal to conclude by November-end this year.

The offer price represents a premium of about 20 per cent over the average price of the share on the National Stock Exchange for the last two weeks.

The purchase of the block of shares of ACL Holcim from the promoters exceeds the limit of five per cent per fiscal and therefore had to make an open offer to the other shareholders according to the Indian takeover code.

If the public offer is accepted in full, Holcim's stake in ACL will rise to more than 56 per cent. The corresponding total investment of 1.34 billion dollars would be financed entirely through internal resources and existing credit facilities, the company added in the statement.

Holcim added that the promoters will continue to hold a stake in ACL and will stay closely engaged with Holcim and ACL.

Suresh Neotia will continue as Chairman and Narotam Sekhsaria as Vice Chairman on the Board of Directors of ACL, it added.

ACL is a leading cement supplier in India and plans to increase its annual cement capacity from 18 to 21 million tonnes by the end of this year. An additional five million tonnes are under construction in Bhatapara in Chhattisgarh and Rauri in Himachal Pradesh, which will come on stream in 2009.

UNI