Ambuja-Holcim deal pass test, get minority shareholder nod

The Ambuja-Holcim deal is heading towards closure. The minority shareholders voted in favour by voting for both the resolutions. The Securities and Exchange Board of India (Sebi) had asked Ambuja to ensure that minority shareholders vote for both resolutions of the deal to go through. Ambuja-Holcim deal is the second deal after Sesa Sterlite to attract large participation from minority shareholders, reports CNBC-TV18's Sajeet Manghat.

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Nearly 72 percent of the minority shareholders participated in the ballot. Around 69 percent of the minority shareholder voted in favour of the deal. Ambuja-Holcim deal was widely seen as a contest between foreign institutional investors (FIIs) versus domestic institutional investors (DIIs), with the foreign advisory firm ISS asking investors to vote in favour of the deal and domestic advisory firms, IIAS (Institutional Investor Advisory Services) and InGovern asking investors to vote against the deal.

Around 87 percent of the public Institutional shareholders casted their vote, with 67.95 percent of those participating voting in favour, 32.05 percent voting against. This indicates that FIIs voted in favour and DIIs led by LIC voted against the deal.

The participation by the retail investors was very thin. Only 10 percent of the retail shareholders participated, 88.17 percent of those polled voting in favour.

The results of the minority shareholders will be presented at the court convened shareholder meet on November 23. The company would require 75 percent of the shareholders to vote in favour of the special resolution.

The company will also convene an extraordinary general meeting (EGM) on Nov 23 to approve cancellation of the shares as per the scheme of amalgamation.

The Ambuja-Holcim deal has passed the litmus test. The deal is almost through, with the remaining two shareholder meet on November 23, a mere formality.