Gujarat Ambuja Cements managing director Narottam S Sekhsaria is taking over asbestos producer Everest Industries from Associated Cement Companies.
Everest Industries was put on the block earlier in the year after Holcim, the world's second largest cement producer, gained control of ACC by acquiring a majority stake in Ambuja Cement India, an investment arm of the Sekhsarias. Holcim had announced that it would exit the asbestos space as it did not fit into its core business.
Everest Finvest (India), a 99.99 per cent subsidiary of Mrinalini Trust, has entered into a share purchase agreement with ACC to acquire the latter's 50 per cent stake in Everest Industries for Rs 134 a share.
According to documents filed by Everest Finvest with the Securities and Exchange Board of India, Narottam Sekhsaria is the settler of the Mrinalini Trust.
In legal parlance, a "settler" means creator. The beneficiaries of the trust are Mrinalini A Somani, Padmini A Somanai and Janardan Sekhsaria. The Somanis and Janardan Sekhsaria are related to Narottam Sekhsaria.
Narottam Sekhsaria was not available for comments.
The Everest Industries stock closed at Rs 179.75 on the Bombay Stock Exchange on November 25.
Once the Sekhsaria family gets control of Everest Industries, it will mark a departure from its practice of managing cement businesses jointly with the Neotia family.
The two families jointly run the cement business through two companies - Gujarat Ambuja Cements and Ambuja Cement Eastern. Suresh Neotia is the chairman of the flagship cement company, Gujarat Ambuja Cements.
