Lafarge Surma Cement Limited (LSCL) finally agreed to buy out Holcim Bangladesh Limited (HBL) at a price set by Bangladesh's central bank.
According to a company disclosure available Sunday, the Bangladesh Bank-brokered acquisition price is Tk 5.05 billion. The price tag was decided on September 17 last.
In September, the LSCL management sought approval from the BB for remitting Tk 9.5 billion in favour of Amsterdam-based Holderfin BV, the owner of Holcim Bangladesh, to complete the HBL acquisition.
But the central bank approved the transfer of Tk 5.05 billion (equivalent to US$ 62.5 million) in favour of Holderfin BV against the acquisition of HBL.
The BB set the price of HBL in comparison with share prices of other bourse-listed companies such as the multinational British American Tobacco Bangladesh Company (BATBC).
Following the BB approval, the France-based multinational company, LSCL, finally agreed on the Tk 5.05 billion-buyout deal to acquire Holcim.
"The company has informed that it has approved the chief executive officer of the company to execute the amendment to the agreement for the sale and purchase of the shares in HBL amending the price for acquiring hundred-percent shares of HBL at Tk 5.05 billion in terms with the Bangladesh Bank approval dated September 17, 2017," said a company disclosure posted on the website of Dhaka Stock Exchange (DSE).
Asked how the buyer and seller could agree to such a lower amount from their initial proposal, Impact PR, the official public- relations agency of LSCL, said: "Following an in-depth assessment the seller concluded that the long-term benefits of the transaction will create more value eventually."
The LSCL Sunday topped the gainers' chart with a rise of 9.94 per cent or Tk 5.40 to close at Tk 59.70 per share on the Dhaka bourse. On the day, the company's share transaction was halted in absence of seller following the declaration of completing acquisition process of HBL.
According to DSE information, the sponsor-directors hold 64.68 per cent of shares at LSCL, while institutes hold 14.41 per cent, foreign shareholders 1.19 per cent and public shareholders 19.72 per cent of shares as of November 30, 2017.
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