LafargeHolcim set to simplify Group structure in India
Company receives official approval for streamlining of ownership through intra-group restructuring
EARLIER this week LafargeHolcim received the approval of the Cabinet Committee on Economic Affairs for the streamlining of their ownership structure in India, and the company is now awaiting formal communication from the Foreign Investment Promotion Board (FIPB) in order to close the transaction.
The transaction has already been approved by all other stakeholders, including the independent directors, minority shareholders, the Securities and Exchange Board of India, stock exchanges and respective High Courts in India.
By way of intra-group restructuring, LafargeHolcim will increase their shareholding in Ambuja to 61.14% and Ambuja, in turn, will acquire LafargeHolcim’s 50.05% stake in ACC Ltd.
The transaction will be effected through a merger of Holcim India Private Ltd (HIPL), a wholly owned financial holding subsidiary, with Ambuja. In a two-stage deal, Ambuja will first acquire, through a purchase, a 24% stake in HIPL for a cash consideration of INR35,000 million, followed by a stock merger between HIPL and Ambuja.
As part of the merger, LafargeHolcim will receive 584 million new equity shares of Ambuja, resulting in an increase of their ownership in the company from the current 50.28% to 61.14%.
LafargeHolcim are one of India’s leading building materials companies with two strong brands, ACC Ltd and Ambuja, together with an extensive network of more than 100,000 dealers and retailers.
The Group has a balanced footprint across India with over 60 million tonnes of cement capacity, more than 13,000 employees and around CHF3.3 billion in net sales in 2015.