HeidelbergCement India, a wholly-owned subsidiary of HeidelbergCement, on Friday announced complete acquisition of Indorama cement and further consolidation of its Indian operation.
HeidelbergCement has decided to merge Mysore Cement, in which it owns around 54% stake, Indorama, (where it acquired 100% stake) and its 100% Indian subsidiary HeidelbergCement India. Post merger, HeidelbergCement will own around 69% stake in the merged entity.
In Indorama, the German major had acquired 50% stake in 2006. The rest 50% stake, it acquired recently, said a senior official in Mysore Cement. In Mysore Cement, HeidelbergCement had acquired 54% stake in 2006. On Friday, because of the merger of Indorama Cement and Heidelberg India in which the German major owns 100% stake, its holding in the merged entity has gone up to around 69%.
As per the amalgamation agreement, 1.3544 equity shares of Mysore Cements would be issued to each equity shareholder of Indorama Cement. "That is 6,77,21,681 shares of face value of Rs 10 each of Mysore Cements will be issued for 5,00,00,000 equity shares of face value of Rs 10 each held in Indorama Cement," it said.
Whereas, shareholders of each equity share of HeidelbergCement would get 0.1469 equity shares of Mysore Cements. "That is 8,81,670 equity shares of face value of Rs 10 each of Mysore Cements will be issued for 60,00,000 equity shares of face value of Rs 10 each held in HeidelbergCement," the statement added.