Lafarge Surma Cement announced Sunday that it has approved a plan for the acquisition of Holcim Bangladesh at a price previously set by Bangladesh Bank.
Dhaka Stock Exchange (DSE) was informed by Lafarge about this approval on Sunday, said the DSE website.
Referring to the information, the DSE in its website said the Lafarge Surma Cement company has authorized its company’s chief executive officer to execute the deal.
The DSE said, “With reference to the earlier news disseminated by DSE on September 18, 2017 regarding approval of acquisition of 100 percent shares of Holcim Cement (Bangladesh) Limited (“HBL”) from Holderfin B.V., the Company has further informed that it has approved the Chief Executive Officer of the Company to execute the Amendment Agreement to the Agreement for the sale and purchase of the shares.”
Earlier, the Bangladesh Bank gave its nod to the plea by Lafarge Surma Cement in this regard and fixed the price of the company at around Tk 504 crore.
Lafarge Surma Cement, one of the largest multinational companies listed with local stock exchanges, wanted to remit $117 million (about Tk 950 crore) to the Netherlands to complete the process of buying its shares in Holcim Cement Bangladesh.
But Bangladesh Bank asked to fix the price at Tk 504 crore for which share price of Holcim Cement experienced a declining trend in the stock markets.
In December last year, Lafarge Surma signed a share purchase agreement with Holderfin to buy 88,244 shares, at $1,325.88 or Tk 106,000 each. BB okayed the share transfer of Lafarge Holcim for merger but said that the share is overpriced and asked Lafarge Surma to submit documents related to share valuation of Holcim Cement.
The valuation of 88,244 shares of HBL was agreed between the parties as $117 million while the central bank gave approval of $62.52 million.
As per the approval given back in September 17 by the Bangladesh Bank, Lafarge can remit a total of Tk 504.78 crore for 88,244 shares of Holcim within one month, meaning the process was supposed to be completed by October 17. But Lafarge was not be able do it.
Later, it sought extension of time and Bangladesh Bank gave 90 days more time to remit the money. Now it is believed that all the hurdles have been removed through the latest announcement by the company.