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Ambuja Cements Ltd has got shareholders’ approval to buy a 24 per cent stake (1.36 crore shares) in Holcim India (Pvt) Ltd from Holderind Investments for Rs 3,600 crore, and the amalgamation of Holcim India with itself.
About 69 per cent of shareholders approved the company’s proposal to buy the stake, Ambuja has said.
Of the total institutional investors holding, 68 per cent have voted for the proposal. Among public investors who participated in the polling, 88 per cent favoured the deal.
In the second leg of the deal, Ambuja will issue equity shares to its Swiss parent Holcim Ltd to merge Holcim India with itself. Around 69 per cent shareholders voted in favour of the amalgamation. About 88 per cent of retail investors supported the deal. After the deal, Holcim’s holding in Ambuja will increase to 61.39 per cent from 50.30 per cent now. Ambuja will own little over 50 per cent in ACC Ltd, another Indian subsidiary of Holcim.
Retail participation in the voting process was poor. Of the 15.11-crore retail shares, only 1.56 crore votes were cast. Of them, 1.38 crore voted in favour and 1,852,859 shares voted against the first proposal of paying Rs 3,600 crore to the parent company.
The amalgamation proposal witnessed a participation of only 1.54 crore shares. Of them, 1.36 crore voted in favour and 1,824,415 against.
The stocks of ACC and Ambuja Cements rose 1.85 per cent and 1.75 per cent on the BSE to close at Rs 1,049.90 and Rs 174.45, respectively, on Friday.
suresh.i@thehindu.co.in
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