Financial Daily from THE HINDU group of publications
Wednesday, Apr 13, 2005

Port Info

Group Sites

Corporate - Mergers & Acquisitions

Holcim fails to get controlling stake in ACC

Our Bureau

Mumbai , April 12

SWISS cement maker, Holcim Ltd, failed to get the controlling stake in Associated Cement Companies (ACC). Holcim's open offer made through its Indian holding company Ambuja Cement India Ltd (ACIL), could get only an additional 20.8 per cent stake in ACC, taking its total stake to 34.6 per cent, as against its plan to have 50.01 per cent.

Holcim hold 67 per cent stake in ACIL while Gujarat Ambuja Cements Ltd (GACL) holds the remaining 33 per cent.

ACC Ltd shares closed at Rs 362.55 a share (Rs 356.90) on the Stock Exchange, Mumbai on Tuesday, a day after the open offer closed.

According to analysts, the Rs 370 a share open offer price was not significantly higher than the market price, and so did not make sense for investors to offer shares.

We expect the company to continue raising its stake in ACC through a creeping acquisition, said a senior analyst at an Indian broking house. She said the 34.6 per cent stake acquired by ACC was large enough to influence board decisions.

Holcim said on January 20, 2005 that it would spend $800 million to acquire stakes in ACC and two units of Gujarat Ambuja Cements Ltd to expand its presence in India, where demand for cement is increasing at a faster pace than in Europe and North America.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Reva to develop fuel cell cars for IOC pilot project

L&T bags Rs 165-cr order from Bangalore water supply board
BEL scouting for R&D, telecom partners
Apollo Tyres hikes prices by 3-4 pc
ICICI Bank to sell Crisil stake to S&P
Lodha case: HC asks both parties to file citations
Holcim fails to get controlling stake in ACC
Essel Propack acquires UK's Telcon Packaging
Chrys Cap divests 7.56 pc in IVRCL
Khaitans shed 9% stake in Kilburn Engg
Vesuvius doubling Kolkata unit capacity
Tata Steel plans capacity expansion at units in China
Tata Coffee plans to set up facility in Uganda
PFC may go public in June
GV Films plans 7:10 rights issue
Survey of sick units Dakshina Kannada dt.
HLL looks to beverages for foods biz growth
Ashok Leyland sales up 12.5 pc; at all-time high

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line