The much-talked-about sale of Ambuja Cement and ACC by Holcim Group will see the single-biggest outflow of foreign capital from the country if the two cement firms are acquired by Indian investors. The deal, valued at nearly $10.35 billion, will put in the shade Cairn Energy Plc’s exit from India in 2010, when it sold Cairn India to Vedanta Group for $4.48 billion.
According to various reports, big business groups such as AV Birla, JSW Group, and Adani Group are in the fray to acquire Holcim’s assets in India. Switzerland-based Holcim Group is expected to get nearly 79200 cr, or 10.35 billion,for its majority stake in Ambuja Cement and ACC,which together are the country's biggest cement maker after ultratech cement.
Holcim's Group stake in Ambuja Cement and ACC,based on the two companies share prices on friday, is valued at 48,620 crore.Holcim owns 63.19 per cent in Ambuja Cement and 4.48 per cent in ACC.Ambuja Cement in turn owns 50.05 per cent in ACC.
The acqurirer will have to come up with an open offer to buy 26 per cent in these two companies from non-promoter shareholders .Ambuja Cement ended friday with a market capitalisation of 73,836 crore while ACC closed the day with 43,819 crore. The deal value will rise if there is a rally in these stocks.
