Tag : Holcim

New Delhi: Swiss building material major Holcim has said its $6.38 billion deal with Asia's richest man Gautam Adani's group is tax-free. Holcim had on Sunday signed a binding agreement with the Adani Group to sell its business in India -- about a 63 per cent stake in Ambuja Cement, which owns a 54.53 stake in ACC (of which 4.48 per cent is direct shareholding). "So, according to our analysis, it is a tax-free transaction," Holcim CEO Jan Jenisch said while addressing investors after the deal on Monday." When asked about the tax implications, he said: "Never know if any complication arises, but we assume that we will get the 6.4 billion Swiss Francs as net proceeds." As per the deal, Adani Group will acquire Holcim's full stake in Ambuja Cement and ACC for CHF (Swiss franc) 6.4 billion ($6.38 billion). A day after, Adani also made an open offer to acquire a 26 per cent stake each in the two listed companies - Ambuja Cements and ACC Ltd -from public shareholders. The Adani family is routing the deal through Mauritius-based subsidiary Endeavour Trade and Investment, which is promoted by Acropolis Trade and Investment Ltd. "The ultimate beneficial ownership of Acropolis Trade and Investment Ltd is held by certain members of the Adani family," as per the open offer. Holcim expects the deal to close in the second half of this year. The Swiss building major is also confident of getting the regulatory approval from the Competition Commission of India for the entire deal, which is estimated to be around $10.5 billion. "We have quite a simple contract. "So, basically, the only condition precedent is the approval of the Competition Commission of India, this has nothing to do with any potential litigation as a standard process... as Adani doe ...