| Guj Ambuja, Holcim strike $800mn deal |
| Our Web Bureau / Mumbai January 20, 2005 |
| Gujarat Ambuja Cements (GACL) and Zurich-based Holcim today announced a strategic partnership, which will see Holcim invest around $800 million in India to acquire majority stakes in ACC and Ambuja Cement Eastern (ACEL). According to an official release issued by GACL today, Holcim has entered into an agreement with private equity investors (AIG/GIC) of Ambuja Cement India (ACIL) to acquire their entire 40% shareholding in ACIL. "Simultaneously, Holcim has also entered into share subscription agreement with ACIL for its proposed subscription of approximately $600 million towards capital," the release said. Post the approvals, Holcim will have 67% equity capital in ACIL, and the balance 33% would be held by GACL. GACL and Holcim have agreed to make ACIL the platform for the strategic alliance, and Holcim, through ACIL, has announced an open offer to acquire a majority shareholding in ACC. "ACIL already owns 13.8% shareholding in ACC. Holcim, through ACIL, is now offering ACC shareholders Rs 370 per share by way of an open offer to increase ACIL |
