Sebi delay hits Holcim's offer for ACC, Ambuja

Swiss cement major Holcim's twin open offer to the shareholders of Associated Cement Companies (ACC) and Ambuja Cement Eastern is delayed as the market regulator, the Securities and Exchange Board of India, is yet to clear the proposals.

DSP Merrill Lynch, manager to the offer, today informed the Bombay Stock Exchange, "In terms of the regulation of the Sebi Takeover Regulations, the draft letter of offer had been submitted on January 28, 2005 and observations in terms of regulations have yet to be received and are awaited. However, the process has delayed the earlier announced schedule of activity and the revised schedule of activity will be announced separately." A source at DSP Merrill Lynch said the clearance is expected shortly.

Sebi has yet to give clearance to Holcim's open offer proposal, to mop up to 50.1 per cent in ACC and nearly 6 per cent in Ambuja Cement Eastern.

The ACC open offer, which is priced at Rs 370 a share, was scheduled to begin today and end on 30 March. Holcim is making this open offer along with Gujarat Ambuja Cements, through an investment company Ambuja Cement India (ACIL). ACIL currently holds 13.4 per cent in ACC.

Sebi officials said clearance for the open offer is likely to be given over the weekend.

According to the arrangement between Holcim and Gujarat Ambuja, Holcim will acquire a majority 67 per cent stake in ACIL, while Gujarat Ambuja will hold the balance 37 per cent.