Holcim announces Open Offer for acquisition of 306,553,600 shares of Ambuja Cement

Ambuja Cements Ltd (ACL) has announced that the Company have been informed by Holderind Investments Ltd, RMIL, RKBK and Mr. Narotam S Sekhsaria that they have entered into a letter agreement dated August 22, 2007 (the "Letter Agreement"), amending the Shareholder's Agreement dated January 30, 2006 with respect to ACL to which ACL has previously executed a Deed of Adherence. The Company understand that the Letter Agreement inter alia provides that Holcim Mauritius would acquire 6,00,00,000 (Six crore) fully paid equity shares of ACL constituting 3.94% of the fully paid up equity voting capital of ACL from RMIL and RKBK for a price of Rs 154/- per share, subject to receipt of the requisite approval from the Reserve Bank of India under the Foreign Exchange Management Act. The Company understand that there will be no change of control of ACL by virtue of the Letter Agreement and RMIL and RKBK would continue to be entitled to nominate two non-retiring, non-executive directors on the Board of ACL and that Mr. Suresh Neotia will continue as Chairman and Mr. Narotam S Sekhsaria as Vice Chairman on the Board of Directors.

The Company has also been notified that, consequent to the above, in terms of Regulation 11(1) of the SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 1997 (the "Takeover Code"), Holcim Mauritius is making a mandatory open offer to the shareholders of ACL or acquiring 306,553,600 shares of ACL, representing 20% of the fully diluted equity voting capital of ACL at the same price of Rs 154/- per share in accordance with the SEBI Takeover Regulations and understand that with the purchase of shares from RMIL and RKBK described above, and assuming full acceptance of the 20 per cent open offer, the shareholding of the Holcim group in ACL will increase to approximately 56 per cent.

Holcim Mauritius have informed the Company that they will shortly make a formal Public Announcement under the Takeover Code.

The stock was trading at Rs.136, up by Rs.5.50 or 4.21%. The stock hit an intraday high of Rs.141 and low of Rs.135. The total traded quantity was 2403597 compared to 2 week average of 1518291.

Source : Equity Bulls

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