Heidelberg takes controlling stake in Mysore Cem

Heidelberg Cement of Germany is taking over Mysore Cement of S K Birla group at a consideration of Rs 436.82 crore.

The company would have a 51.08% stake in the cement outfit following the deal. The German major has already entered the cement space in India with Indo-Rama group.

The board of Mysore Cement today decided to issue 6.65 crore fresh shares to the Heidelberg as a part of the consideration.

Besides, the S K Birla group would sell 1.34 crore shares from its own holding to Heidelberg. The group holds close to 24.5% in Mysore Cement.

However, of the group's holdings, around 41 lakh shares held by Birla VXL are now with the Asset Reconstruction Company of India (ARCIL) following the restructuring of that outfit. 

Mysore Cement currently has around nine crore equity shares. With the issue of additional 6.65 crore shares, the company would have 15.65 crore shares.

The German cement major would have around eight crore equity shares out of the 15.65 crore, or a 51.08% stake. Ashis Guha is expected to take over as managing director of Mysore Cement replacing A Bhasia. Guha is now the deputy CEO and partner of Ambit Corporate Finance.