The CEO of Holcim says there will be no capital gains tax on sale revenues.

Holcim CEO Jan Jenisch said the $10.5-billion acquisition of Ambuja Cements and ACC to the Adani Group would not incur any capital gains tax . The Swiss company would sell the Indian companies to the Adani familys offshore special purpose vehicle (SPV) through a Mauritius- This will most likely give the Swiss company the benefit of Indias tax treaty with the island country .

Holcim CEO Jan Jenisch reported on Monday that the company's $10.5-billion acquisition of Ambuja Cements and ACC to the Adani Group would not incur any capital gains tax.It is a tax-free transaction, according to our findings.There is no income tax or other tax imposed on this transaction.I'm not sure if there is any problem, but we assume we will receive this 6.4 billion (Swiss francs) as net income, according to Jenisch, who said in an analyst call on Monday that Holcim does not have to pay capital gains taxes on the bulk, if not all, of the $10.5 billion income from the sale because it would sell the Indian companies to the Adani familys offshore special purpose vehicle (SPV) through a Mauritius- This will most likely give the Swiss company the benefit of India's tax treaty with the island country.

However, a cash-out is still available for investments made before April 1, 2017.Holcim acquired the cement assets in India 17 years ago, when it signed a share purchase agreement with Adanis SPV Endeavour Trade and Investments for the sale of its interest in Mauritius-based Holderind Investments, which in turn owns 63.19% of Ambuja Cements.The Holcim company also agreed to sell a 54.53% stake in ACC, out of which 50.05% is held by Ambuja Cements.In India, capital gains from the selling of these stakes to the overseas SPV will not be taxed.

The benefit is now only available to investors from these two nations, up until the cut-off date of April 1, 2017. para