As part of restructuring its operations in India, cement giant Holcim stated on 24 July that it would increase its stake in Ambuja Cements. Holcim will increase its shareholding in Ambuja to 61.39 per cent from the current stake of just over 50 per cent, the Zurich-based firm added. Ambuja Cements will issue 58.4 crore shares to Holcim in a proposed merger swap ratio of 6.6 Ambuja shares for 1 ACC share. Ambuja will in turn acquire Holcim’s 50.0-per cent stake in ACC. Both Ambuja and ACC will continue to operate as separate entities.
According to terms of the deal, Ambuja Cements will acquire a 24-per cent stake in Holcim India for Rs 3,500 crore and Holcim India will be merged into Ambuja via an all-stock merger. Citi has been appointed as advisor to Holcim while Axis Capital has been appointed as the advisor for Ambuja Cements.