LafargeHolcim has approval from the Cabinet Committee on Economic Affairs to streamline its ownership structure in India.
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. LafargeHolcim is now awaiting formal communication from the Foreign Investment Promotion Board in order to close the transaction.
The restructuring will sees LafargeHolcim increase its shareholding in Ambuja to 61.14% and Ambuja in turn will acquire LafargeHolcim’s 50.05% stake in ACC.
The transaction will be effected through a merger of Holcim India Private, a wholly owned financial holding subsidiary, with Ambuja. In a two stage deal, Ambuja will first acquire, through a purchase, a 24% stake in Holcim India Private for a cash consideration of INR 35,000 million, followed by a stock merger between Holcim India Private and Ambuja.
As part of the merger, LafargeHolcim will receive 584 million new equity shares of Ambuja resulting in an increase of its ownership in Ambuja from the current 50.28% to 61.14%.
LafargeHolcim has two brands in India, ACC and Ambuja.