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ACC to acquire shareholding in EEL
Associated Cement Companies Ltd (ACC) is to acquire the entire equity shareholding in Eternit Everest Ltd (EEL), a leading building products company of which Etex Group, Belgium and ACC are joint promoters.
Associated Cement Companies Ltd (ACC) is to acquire the entire equity shareholding in Eternit Everest Ltd (EEL), a leading building products company of which Etex Group, Belgium and ACC are joint promoters.
ACC, which presently has a 26 per cent stake with 38,50,020 shares, proposes to acquire Etex Group's 50 per cent equity stake in EEL comprising 74,00,010 shares of Rs 10 each at Rs 22 per share for Rs 16.28 crore and will make the fibre sheet producer its subsidiary, Company Secretary and Director P K Sinor said in a statement in Mumbai on Tuesday.
"The cement major proposes to acquire the shareholding of the co-promoters by way of share purchase agreement to be entered into on December 26," he said adding that, "The acquisition would be subject to approval of Reserve Bank of India and other approvals, if any."
Sinor said, "In view of the global restructuring being undertaken by the Etex Group, ACC was given the first preference to acquire its shares. EEL's 'Everest' brand was the oldest and strongest brand which enjoys huge brand equity," he added.
"Whilst ACC was endeavouring to divest its equity stake in business which have no synergy with cement, the company decided to continue with refractories and further strengthen its presence in the ready mix concrete and asbestos cement products," he said. Bureau Report
ACC, which presently has a 26 per cent stake with 38,50,020 shares, proposes to acquire Etex Group's 50 per cent equity stake in EEL comprising 74,00,010 shares of Rs 10 each at Rs 22 per share for Rs 16.28 crore and will make the fibre sheet producer its subsidiary, Company Secretary and Director P K Sinor said in a statement in Mumbai on Tuesday.
"The cement major proposes to acquire the shareholding of the co-promoters by way of share purchase agreement to be entered into on December 26," he said adding that, "The acquisition would be subject to approval of Reserve Bank of India and other approvals, if any."
Sinor said, "In view of the global restructuring being undertaken by the Etex Group, ACC was given the first preference to acquire its shares. EEL's 'Everest' brand was the oldest and strongest brand which enjoys huge brand equity," he added.
"Whilst ACC was endeavouring to divest its equity stake in business which have no synergy with cement, the company decided to continue with refractories and further strengthen its presence in the ready mix concrete and asbestos cement products," he said. Bureau Report