Mumbai, April 01,2014 – Ambuja Cements received Gujarat and Delhi High Courts’ approval to merge Holcim India with itself. While sanctioning the scheme of amalgamation, the Gujarat High Court also approved reduction of capital of the company as envisaged in the scheme, Ambuja Cements said in a filing to stock exchanges.
Certified copies of the order from both courts are awaited. The scheme is subject to fulfilment of conditions specified and the stock exchanges will be intimated once the scheme becomes effective, said the company.
The amalgamation proposal was part of Ambuja’s Swiss parent Holcim’s plans to consolidate its holding in its Indian subsidiaries.
As part of the complex consolidation plan proposed last July, Holcim will transfer over 50 per cent of its stake in group company ACC to Ambuja.
The transaction will result in Ambuja paying about Rs.3,500 crore for a 24 per cent stake and issue shares for the rest. Post restructuring, Holcim’s stake in Ambuja would rise to 61.39 per cent from a little over 50 per cent now. Ambuja received investor approval for the proposal through postal ballot. The company expects to complete the entire restructuring process by June.
Holcim has said both ACC and Ambuja will remain listed separately on the bourses. After restructuring, Ambuja expects substantial saving from a common management structure with two CEOs steering each companies under the leadership of a common managing director. Shares of Ambuja Cement and ACC were up 2 per cent each at Rs.186 and Rs.1,294, respectively, on Wednesday. Business Line