Bangalore-based SK Birla group company Birla VXL offloaded its entire stake, representing 2.62 per cent in Mysore Cement in an open market transaction. Mysore Cement in a filing on the Bombay Stock Exchange today informed that Birla VXL sold 4,140,120 shares.
The move preceded the opening of the offer from German major Heidelberg to the shareholders of Mysore Cements, which was scheduled to open from December 27.
Interestingly, in a temporary relief to German cement major HeidelbergCement, the Securities Appellate Tribunal had recently allowed the company to go ahead with its open offer for Mysore Cements at Rs 58 per share, lower than the price ordered by market regulator SEBI.
The market regulator had earlier asked HeidelbergCement to raise the price of its open offer to Rs72.50 from Rs58.
The Sebi reasoning was that as the acquirer has paid a higher price to the SK Birla Group, promoters of Mysore Cements, which includes a non-compete fee as well, the minority shareholders should also be paid the same price.
Earlier, Heidelberg had bought a majority stake (50.1 per cent) in Bangalore-based Mysore Cements for US$100m in July, but its open offer has been stalled since the last six months.