Holcim acquires 14.8-per cent stake in Gujarat Ambuja; to make open offer

Swiss cement major Holcim has acquired a 14.8-per cent stake in Gujarat Ambuja Cements from its promoters. A total of 20 crore equity shares were acquired from two promoter companies and an individual promoter at a price of Rs105 per share. The price includes a non-compete fee of Rs15 per share. Residual stake of the present promoters would be 8.8 per cent.

Holcim would make an open offer for an additional 20 per cent stake subsequently. Though it is not required to make an open offer under SEBI guidelines as the stake acquired is below 15 per cent, Holcim would be making a voluntary offer. The open offer would be made at a price of Rs90 per share.

Holcim is the second-largest cement company in the world. The group controls two-thirds of privately held company Ambuja Cements India which in turn has a one-third stake and is the largest shareholder in Associated Cement Companies (ACC). After the stake acquisition in Gujarat Ambuja, Holcim would control nearly 33 million tones of annual cement capacity in India making it the largest player ahead of the Aditya Birla group.

After the stake acquisition in Gujarat Ambuja, Holcim would control nearly 33 million tones of annual cement capacity in India making it the largest player ahead of the Aditya Birla group.

Gujarat Ambuja has also announced a number of top management changes. Anil Singhvi, currently an executive director, would take over as the managing director for a period of five years. Narotam Sekhsaria, the current managing director, has been appointed vice chairman and non-executive director not liable to retire by rotation. A whole time director and two non-executive directors appointed by the existing promoters have also resigned.

Gujarat Ambuja is trading at Rs90.75 (down 1.2 per cent) at 02:30 PM on the NSE today. The stock touched a high of Rs103 in opening trades.