Lafarge Surma Cement Limited, a listed company at Dhaka Stock Exchange, and Holcim Cement (Bangladesh) Limited have finally completed their merger in Bangladesh as all the required procedures and filings have been completed.
The operations of the entities, however, will remain separate as Holcim Cement (Bangladesh) has become a subsidiary of LafargeHolcim Bangladesh Limited, the changed name for Lafarge Surma Cement, due to acquisition of the entire Holcim shares by Lafarge.
According to a DSE web post, Lafarge declared that Holcim Cement (Bangladesh) has become a wholly owned subsidiary of LafargeHolcim Bangladesh after completing necessary filings and formalities.
The company further informed that the remittance of Tk 504.78 crore as approved by Bangladesh Bank for the transfer of 100 per cent shares (88,243 shares) of HBL had been completed, it said.
The necessary filings before the regulatory authorities including Registrar of Joint Stock Companies and Firms have also been completed, it said.
On Monday, the company informed the DSE that they had executed necessary documents, including share transfer instruments for transfer of 88,243 shares of HBL to LafargeHolchim for the sale and purchase of the HBL shares.
In December 2016, Lafarge Surma signed an agreement with Amsterdam-based Holderfin to purchase its holdings in Holcim Bangladesh for Tk 936 crore valuing each share of Holcim at Tk 1.06 lakh and sought permission from the BB to remit Tk 936 crore.
On September 17 last year, the BB rejected the valuation saying that the deal overvalued Holcim shares. The central bank later set the acquisition value at Tk 504.78 crore and it asked the company to remit the fund.
On December 24, 2017, Lafarge Surma informed the DSE that both companies had approved the acquisition of 100 per cent shares of Holcim Cement (Bangladesh) Ltd at the price of Tk 504.78 crore set by Bangladesh Bank after making amendments to their previous share buy-sale agreement.
In 2015, Lafarge and Holcim officially got merged in about every country where they have operations, excluding some countries including Bangladesh.