At present Holcim Mauritius has 32.3 per cent stake in Ambuja Cements and after the acquisition of additional 3.9 per cent stake, the Swiss firm is obliged to make an open offer.
With the purchase of this block of shares, Holcim has exceeded the acquisition limit of five per cent in a fiscal year as prescribed by takeover norms of the country and was required to make the open offer.
Holcim Mauritius has made the open offer to shareholders of Ambuja Cements for acquiring over 30.65 crore shares, representing a 20 per cent stake in the company at Rs 154 per share, the domestic cement maker said in a filing on Bombay Stock Exchange. The proposed price of the open offer, which would conclude by the end of this November, represents a premium of around 20 per cent over the average price of the scrip on National Stock Exchange in the last two weeks.
Letter of agreement
Ambuja Cements said a letter of agreement had been entered into by its four promoters — Narottam S Sekhsaria, Radha Madhav Investments Ltd (RMIL), RKBK Fiscal Services and Holderind Investments for sale of a 3.9 per cent stake to Holcim Mauritius.
The letter of agreement provides that Holcim Mauritius would acquire six crore fully paid equity shares of Ambuja Cements, constituting a 3.94 per cent stake in the company from RMIL and RKBK at Rs 154 per share, subject to requisite approval from the Reserve Bank of India.
With the purchase of these shares and assuming full acceptance of the 20 per cent open offer, the shareholding of the Holcim group in Ambuja Cements would increase to around 56 per cent.
There would be no change of control of Ambuja Cements following the acquisition of stake and RMIL and RKBK would continue to be entitled to nominate two non-retiring, non-executive directors on its board. Suresh Neotia would continue as Chairman and Narotam S Sekhsaria as Vice Chairman on the board of directors, Ambuja Cements added.
“We will decide whether to increase the stake further after the currently planned purchases are completed, Chief Executive Officer Markus Akermann said.
“The very dynamic volume growth in India will continue,” he added.