By InvestAdvocate

Lagos (INVESTADVOCATE)-World’s building materials and cement producers, LafargeHolcim on Thursday said it has received the approval of the Cabinet Committee on Economic Affairs for the streamlining of its ownership structure in India.

“The transaction has already been approved by all other stakeholders including the independent directors, minority shareholders, the Securities and Exchange Board of India, stock exchanges and respective High Courts in India. LafargeHolcim is now awaiting formal communication from the Foreign Investment Promotion Board (FIPB) in order to close the transaction,” the global cement producer said in a statement.

The company said through intragroup restructuring, it will increase its shareholding in Ambuja to 61.14 percent and Ambuja in turn will acquire LafargeHolcim’s 50.05 percent stake in ACC Limited.

LafargeHolcim disclosed the transaction will be effected through a merger of Holcim India Private Ltd. (HIPL), a wholly owned financial holding subsidiary, with Ambuja. “In a two stage deal, Ambuja will first acquire, through a purchase, a 24 percent stake in HIPL for a cash consideration of INR 35,000 million, followed by a stock merger between HIPL and Ambuja. As part of the merger, LafargeHolcim will receive 584 million new equity shares of Ambuja resulting in an increase of its ownership in Ambuja from the current 50.28 percent to 61.14 percent,” the company added.