 "Nirma cements $1.4-bn Lafarge India buyout")
Global cement major LafargeHolcim has, through its subsidiary Holderind Investments, increased shareholdings in ACC and Ambuja Cement.
It bought 39.1 million shares of Ambuja Cement, taking its holding to 63.11 per cent. In ACC, a subsidiary of Ambuja, Holderind purchased 7.87 million shares, taking the holding to 4.48 per cent.
With this additional purchase, the promoters’ (LafargeHolcim and its subsidiaries)’s overall stake in ACC stands at 54.53 per cent against 50.34 per cent earlier.
LafargeHolcim said, “The purchase price will be paid in rupees. The impact on LafargeHolcim's net debt is 325 million francs. This investment was not included in the group’s net debt objective of around 13 billion francs at the end of 2016, which should be adjusted accordingly.”
On Wednesday, shares of Ambuja closed at Rs 202.4, down 3.6 per cent over previous close. The stock had hit a 52-week high of Rs 282 recently. ACC closed at Rs 1,322.8, down 1.8 per cent over previous close. The stock had hit a 52-week high of Rs 1,738 recently.
India is one of LafargeHolcim’s key markets. “These share purchases further increase the group's interest in its two strong companies which constitute a solid platform to capture future growth,” said LafargeHolcim.
ACC and Ambuja have yearly capacity of a little above 60 million tonnes in India.
