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Ambuja-Holcim deal: Merger would've been better, says IIAS

Word on the street is that FIIs voted in favour of the deal heeding the advice of foreign proxy firms ISS and Glass Lewis.

November 25, 2013 / 11:24 IST
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Despite a strong "no" from Indian proxy advisory firms, IIAS, SES and InGovern, Ambuja shareholders voted in favour of the company’s restructuring plans that consumes most of the companies cash in buying parent Holcim's stake in ACC.

Even though domestic institutional investors such as LIC who are reportedly against the restructuring the proposals received 68 percent approval from minority shareholders, that is non-promoter shareholders. Word on the street is that FIIs voted in favour of the deal heeding the advice of foreign proxy firms ISS and Glass Lewis.

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When the deal received negative press in India, the Ambuja managing director had said that Indian investors are emotional about cash.

However, Anil Singhvi, Founder, IIAS feels there is nothing wrong in being “emotional” with your investments. "When you look at the shareholding of Ambuja, 51 percent is held by Holcim, 31 percent is held by foreign institutional investors (FIIs) and about 11 percent is held by DIIs or domestic institutions and just about 8 percent is held by the retail investors,” he told CNBC-TV18 in an interview.