Going by the market regulator’s orders, Ambuja Cements will seek shareholders’ nod separately for the two-tier deal with parent Holcim. Firstly, for buying a 24% stake in Holcim (India) from Holderind International for Rs 3,500 crore, and later amalgamating the same with the company.
Back on July 24, Ambuja Cements, in a multi-layered transaction, announced its plans to buy a majority stake in cement maker ACC through a complex transaction that involves paying Rs 3,500 crore to Swiss parent Holcim.
As an initial step, it plans to acquire a 24% stake in Holcim (India) from Holderind International for Rs 3,500 crore. Post the acquisition, Ambuja Cements and Holcim India would merge through a share-swap arrangement. After the merger, the combined entity, which will retain its name as Ambuja Cements, will hold a 50.5% stake in ACC, another Holcim group cement company in India.
Ambuja Cements was set up in 1986. The total cement capacity of the company is 18.5 million tonnes. Its plants are some of the most efficient in the world. With environment protection measures that are on par with the finest in the developed world.