LafargeHolcim has announced that its subsidiary Holderind Investments Ltd has increased its shareholding in Ambuja Cement Ltd (Ambuja) by 39,100,000 shares to 1,253,156,361 shares (63.11 per cent of total Ambuja shares) and in ACC Limited (ACC), a subsidiary of Ambuja, by 7,870,000 shares to 8,411,000 shares (4.48 per cent of total ACC shares).
The purchase price will be paid in Indian rupees. The impact on LafargeHolcim’s net debt is CHF 325 million. This investment was not included in the Group’s net debt objective of around CHF 13 billion at the end of 2016 which should be adjusted accordingly.
India is one of LafargeHolcim’s key markets with very solid long term fundamentals and a clear potential for further improvement in business performance. These share purchases further increase the Group’s interest in its two strong companies which constitute a solid platform from which to capture future growth.
LafargeHolcim is one of India’s leading building materials companies with two strong brands, Ambuja and ACC Limited along with an extensive network with over 100,000 dealers and retailers. The Group has a balanced footprint across India with more than 60 million tonnes of cement capacity and around CHF 3.3 billion in net sales in 2015. LafargeHolcim has more than 13,000 employees in India.