Ambuja Cements slumps after Holcim restructures India operations

Last Updated: Thu, Jul 25, 2013 04:33 hrs

Shares in India's Ambuja Cements Ltd slumped nearly 10 percent in pre-open trade after Holcim Ltd said on Wednesday that it would raise stake in the company in a restructuring of its operations in India.

Under the deal, Ambuja will pay 35 billion rupees ($586 million) to buy a 24 percent stake in Holcim India, the Swiss cement maker's local holding company, and then Holcim India will be merged into Ambuja through a share swap.

Ambuja will also issue to Holcim 584 million new shares, valued at about 112 billion rupees at current market value. This will increase Holcim's stake in Ambuja to 61.39 percent from just over 50 percent.

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