Ambuja to seek shareholders nod for both legs of amalgamation

NEW DELHI: Ambuja Cements today said it will seek approval of shareholders separately for the two-tier deal with parent Holcim, as directed by market regulator SEBI.

Holcim had in July announced the plan to restructure its Indian businesses, Ambuja Cements and ACC, in two phases -- purchase of 24 per cent shares in Holcim India for cash and amalgamation of Holcim India with the Ambuja Cements.

"The company reiterates that both steps of transaction ... were always inter-linked as disclosed in Ambuja Cements's stock exchange filing of July 24, 2013," Ambuaj Cements said in a statement.

One step could not be completed without the other and minority shareholder approval of the scheme as per the SEBI circulars was one of the condition precedents to the 24 per cent purchase of Holcim India by Ambuja Cements, it said.

"The Company will, as required by SEBI, seek shareholder approval under the SEBI circulars for both transaction steps," Ambuja Cements said.

Ambuja's reply came after Securities and Exchange Board of India (SEBI) sent its observation to NSE and BSE stating that the two steps of the transaction are interdependent and mandated shareholder approval under the SEBI circulars for both steps.