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Kolkata March 7 The Sekhsaria group-Holcim combine has raised its stake in ACC by over 2 per cent in the last fortnight through secondary market operations, according to a disclosure to the stock exchanges.

Ambuja Cement India Pvt Ltd, the principal stakeholder in ACC Ltd, has raised its stake further through the creeping acquisition route to 37.07 per cent from 35.15 per cent. This has been achieved through market purchase of 36 lakh shares between February 14 and March 6.

Holderind Investments Ltd, the investment arm of the Swiss cement major Holcim, has also acquired for the first time the status of PAC with Ambuja Cement Pvt Ltd by mopping up 5.41 lakh ACC shares from the market, representing 0.29 per cent voting rights in ACC, during the same period.

The current acquisition of ACC shares from the secondary market is a part of a deal to hike holding in ACC by both Ambuja Cement and Holcim.

In a complex and multi-layered deal in 2005, Holcim, the world's second-largest cement maker, had teamed up with Gujarat Ambuja Cements Ltd (GACL) to acquire controlling stake in ACC and increase the stake further by end 2007.

Currently, Holderind Investment Ltd holds 16.51 per cent in GACL and the Sekhsaria family-controlled Ambuja Cement India Pvt Ltd holds around 10 per cent

The Gujarat Ambuja-Holcim agreement provided Gujarat Ambuja with a `put' option to sell its 33 per cent stake in Ambuja Cement India. It could, as per the agreement, do so at any time between June 2005 and December 2007. According to the arrangement, if the option is not exercised, Holcim would have a call option to buy the stake after January 1, 2008.

Gujarat Ambuja had picked up a 14.4 per cent stake in ACC in 1999, and this was vested with Ambuja Cement India. Ambuja Cement Eastern, in which the group held a 94.1 per cent stake, was also transferred to various investors. A 40 per cent stake in the latter was sold to FIIs to cut the debt burden.

Under the 2005 agreement, Holcim picked up a 67 per cent stake in Ambuja Cement India. An open offer was made for a 37 per cent stake in ACC and 5.9 per cent in Ambuja Cement Eastern. The plan was to give Holcim an effective stake of about 33 per cent in ACC and 67 per cent in Ambuja Cement Eastern.

The ACC counter today closed at Rs 813.95 on the BSE, down around 5 per cent and GACL closed 8.5 per cent down at Rs 104.15.

More Stories on : Mergers & Acquisitions | Cement | Associated Cement Companies Ltd

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