Holcim, the world's second largest cement maker, announced plans to take majority control of Ambuja Cements (ACL) through purchase of 3.9% stake from the Sekhsaria-Neotia family and a subsequent 20% open offer for the minority shareholders.
Priced at Rs 154 a share - an 18% premium over the closing price of Rs 130.50 on Wednesday - the twin move will scale up the Swiss major’s shareholding in the country’s third largest cement company to marginally over 56% from the existing 32.3%. The move, subject to regulatory approvals, will cost Holcim $1.34 billion (Rs 5,463 crore).The investment will be financed from internal accruals, Holcim said in a release.
The open offer price of Rs 154 per share puts the enterprise value of ACL at $ 300 per tonne - the highest in the industry. The market capitalisation of ACL at the offer price would be Rs 23,408 crore.
Read more in The Business Standard article.
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