Swiss major Holcim said it will merge holding firm Holcim India with its unit Ambuja Cements in a cash and share deal to restructure India operations in a two-step process estimated to be about Rs 14,500 crore.
Besides, as part of the process, Holcim India's over 50 per cent stake in ACC will go to Ambuja.
Holcim's stake in Ambuja will rise to 61.39 per cent, from a little over 50 per cent after merger of Holcim India with Ambuja.
Ambuja Cements would merge Holcim India through cash and share transactions. Ambuja will first acquire a 24 per cent stake in HIPL for Rs 3,500 crore, followed by stock merger between HIPL and Ambuja.
"As part of the merger, Holcim will receive 58.4 crore new equity shares of Ambuja resulting in an increase of its ownership in Ambuja from 50.55 per cent to 61.39 per cent," Holcim said in a statement.
The value of 58.4 crore equity shares at current market price is about Rs 11,000 crore.
When asked what could be the total value of the transaction, Ambuja Cements Managing Director Onne van der Weijde said it will be about Rs 14,500 crore.
ACC and Ambuja would operate as separate entities with their respective brands, managements and dealer networks, he added.
At the same time, he said the restructuring will have a synergy benefit of Rs 900 crore per annum accrued from logistics and supply chain.
At present, Holcim has a controlling stake in both ACC and Ambuja. The Swiss major directly owns 40.79 per cent stake in Ambuja and another 9.76 per cent through Holcim India (HIPL). Holcim has 0.29 per cent in ACC directly and 50.01 per cent through HIPL.
Post these transactions, Holcim will have 61.39 per cent stake in Ambuja and 0.29 per cent stake in ACC directly.
Ambuja will have 50.01 per cent stake in ACC.
Holcim said it does not have any plan to delist ACC from the Indian bourses, rather it would buy shares through open market purchase.