Mysore Cements takes steps to join HeidelbergCements of Germany
New Delhi, Aug 23 (UNI) Mysore Cements Ltd today approved the allotment of 6.65 crore equity shares of Rs 10 each at Rs 54 per share, on a preferential basis to Cementrum I B V, in order to eventually become a part of the fourth-largest global cement manufacturer HeidelbergCements Group.
The company will become the subsidiary of the HeidelbergCement Group after the acquisition of a part of the shareholding of the S K Birla Group, post the completion of the open offer in accordance with law.
The company had announced the implementation of the joint venture relationship created on July 18, 2006 between the S K Birla Group and the fourth-largest global cement manufacturer HeidelbergCements Group.
The allotment of 6.65 crore equity shares is inclusive of a premium Rs 44 per share.
This issue has enabled the company to raise Rs 359 crore as long term capital resources and has as on date restored its net worth to a significant positive level. This makes it capable of addressing its debt and further strengthening its operations.
The Equity Capital now stands at Rs 158 crore.
The issue price is about 23 per cent over the minimum issue price under relevant SEBI rules and about 4.5 per cent above the BSE closing price of Rs 51.65 on the NSE yesterday.
Post the preferential issue, Heidelberg would hold a 47 per cent stake in the company, and may even acquire majority control of the company, depending on how the open offer does. S K Birla group would continue to hold a small stake of less than 5 per cent, a company spokesperson said.
Cementrum I B V, a subsidiary of HeidelbergCement, has already announced its open offer to shareholders of the company at a price of Rs 58 per share, to which the Board has accorded its no-objection certificate earlier.
H K Kejriwal, Dr V K Gangwal, A S Shankare Gowda and Padam K Khaitan have resigned today as Directors, besides MD N L Hamirwasia and Executive Director N Lodha also resigning from their respective positions, a company statement said.
S K Birla continues to be Chairman of the Board and Sidharth Birla continues as Director.
Dr B Seheifele (Chairman of the Managing Board of HeidelbergCement), Dr Daniel Gauthier (Member of the Managing Board of HeidelbergCement), Dr Lorenz Nager (Member of the Managing Board of HeidelbergCement) and Mr Ashish Guha (Country Head, India for HeidelbergCement) have been appointed as Directors of the company today.
Mr Ashish Guha has also been appointed as MD of the company while Brad Taylor has been appointed the CFO.
Ambit Corporate Finance was the Financial Advisor and J Sugar Associates were the legal Advisors to HeidelbergCement. SMIFS Capital Markets was the financial advisors and Khaitan&Co were the legal advisors to the company and the S K Birla Group.
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