Holcim hikes stake in Gujarat Ambuja Cements to 18.5 per cent
16 Nov 2006
Mumbai:
Holcim, the world's second-largest cement maker, has increased
its stake in Gujarat Ambuja Cements Ltd from 14.8 per
cent to 18.5 per cent. The Swedish cement maker bought
50 million shares of Gujarat Ambuja, forming 3.7 per cent
of its total equity, for a consideration of Rs690 crore.
Company source said Holcim is expected to increase its
stake in the company further up to 27 per cent.
Holcim bought the shares in a private placement at Rs137
per share, reports quoting company sources said.
Holcim
bought a 14.8-per cent stake in Gujarat Ambuja for $1
billion in January as part of its strategy to strengthen
its foothold in India's fast-growing market.
Gujarat Ambuja is India's third-biggest cement maker with
capacity of 13 million tonnes a year.
Holcim, with a market capitalisation of around $22 billion,
already controls more than a third of Associated Cement
Companies Ltd, India's second-biggest cement producer
with 18 million tonnes annual capacity. Holcim has market
presence in all emerging markets of Latin America and
Asia.