Date:30/03/2006 URL: http://www.thehindubusinessline.com/2006/03/30/stories/2006033004230100.htm

Back Holcim open offer may be rescheduled for next week

Our Bureau

Mumbai , March 29

Swiss major Holcim's open offer for Gujarat Ambuja Cements Ltd, which has been delayed due to procedural reasons, is likely to be rescheduled for next week or so, said merchant banking sources.

The offer was originally scheduled to open on March 25. The delay is due to the regulator asking for a few clarifications and has nothing to do with the price increase of the scrip, said merchant banking sources. In any case, they said, there will be no change in the offer price, whatever the delay.

The delay had set off market talk linking it to the recent price increase of GACL on the bourses. The scrip, which crossed the open offer price of Rs 90.64 per share early this month, has been rising fairly steadily ever since. Today, it closed at Rs 103.75 on the BSE, rising by 3.78 per cent during the day.

Holcim acquired 14.8 per cent stake in GACL earlier this year at Rs 105 per share from the company's promoters. This included a premium of Rs 15 per share for a non-compete assurance.

Holcim's open offer for Associated Cement Companies last year did not fetch the multinational a majority stake in the company although it clearly made it the single largest stakeholder.

The ACC offer, which was for 36.4 per cent stake, got Holcim an additional 20 per cent stake. Holcim ultimately holds about 34 per cent stake in ACC instead of the targeted 50-plus per cent stake.