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The founder-promoters of Ambuja Cements Ltd (ACL), who are still holding a minority stake in the company after the company was taken over by Holcim, have exited the company following the termination of shareholders agreement.
However, Mr Narotam Sekhsaria will continue as Non-Executive Chairman of the board till he is of 75 years and as Chairman Emeritus thereafter, subject to rules.
In a communication to the stock exchanges today, ACL said that its board was informed that the existing shareholders agreement between Mr Narotam Sekhsaria, Radha Madha Investments Ltd (RMIL), RKBK Fiscal Services Pvt Ltd (RKBK) and Holderind Investments Ltd (HIL) has been terminated with effect from December 15, 2011.
Hence, on the same date, RMIL and RKBK have sold their entire shareholding in the company to Holcim. The board took on record the termination of the shareholders agreement at its meeting on December 15.
Following the termination of the agreement, with immediate effect, the outgoing promoters (and any shareholding that they may hold) will not be reflected in the “promoter/promoter group’’ category in all disclosures made by the company in accordance with applicable law.
The board unanimously approved the continuation of Mr Narotam Sekhsaria as Non-Executive Chairman of the Board till he is of 75 years of age and as Chairman Emeritus thereafter, subject to the requisite approvals and applicable law.
As on September 30, 2011, Mr Suresh Kumar Neotia held 39,000 shares, Mr Narotam Sekhsaria 1,000 shares, RMIL 1,00,55,484 shares and RKBK Fiscal Services 19,86,425 shares constituting less than 1 per cent of the equity.
Ambuja Cements, earlier known as Gujarat Ambuja Cements Ltd, was founded by Mr Narotam Sekhsaria in 1983 with Mr Suresh Neotia and it began production in 1986.
Global cement giant Holcim acquired management control of ACL in 2006 and it held a little over 46 per cent equity in the company before the latest acquistion. ACL’s present capacity is about 25 million tones with five integrated cement plants and eight grinding units in India.
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