The S.K. Birla Group has decided to sell 51 per cent stake in its loss making Mysore Cement to the Germany-based HeidelbergCement for a whopping $ 94 million (Rs 436.82 crore). An extraordinary general meeting has been convened on 16 August 2006 at Bangalore to get approval of the shareholders in this matter.
As per the proposal, the Mysore Cement will get Rs 54 per share from Heidelberg for offer of 6.6 crore shares on a preferential basis, the promoters, the S.K. Birla Group will get Rs 58 per share for offer of 1.34 crore shares. The S.K. Birla Group will also get Rs 14.5 per share as non-competing fee.
Later, HeidelbergCement will make an open offer to the shareholders at Rs 58 per share. The issue price of Rs 54 translates into a premium of over 13 per cent over the BSE closing price of 18 July 2006 and about 23 per cent over the minimum issue price under relevant SEBI norms. The issue price of Rs 58 translates into a premium of over 21 per cent over the BSE closing price of 18 July 2006.
Mysore Cement has a nominal cement capacity of 2.095 million tonnes per annum with operations at Ammasandara (Karnataka), Damoh (Madhya Pradesh) and Jhansi (Uttar Pradesh) and sells cement under the "Diamond" brand name in both Central and South India.
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| Posted : 7/20/2006 |
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