Holcim hikes stake in Ambuja Cements to 46%

Holcim, the world's second largest cement maker, has increased its stake in one of its Indian affliates, Ambuja Cements (ACL), through an open offer to 46%.

The offer price was fixed at Rs 154 per share, which puts the enterprise value of ACL - the third largest cement maker in the country -  at $300 per tonne - the highest in the industry.

When Holcim picked up 3.9% from the Sekhsaria-Neotia family in ACL in August this year, the move triggered a 20% open offer for the minority shareholders of ACL. The company had said that the open offer would cost it $1.34 billion (Rs 5,463 crore).

Holcim holds about 40% stake in the country's largest cement maker ACC. The current capacities of its two affiliates is 37 million tonne per annum - one fifth of the country's total cement producing capacity.

Holcim plans to invest $1.2-1.5 billion in India to increase production capacity by about 15 million tonne to over 50 million tonne by the end of 2010.