German cement group Heidelberg, the fourth-largest cement manufacturer globally, has taken over the management of Mysore Cements. The board of Mysore Cements has been restructured and Heidelberg has appointed a new CEO.

The board of Mysore Cements, which met today, has approved the issue of 6.65 crore equity shares on a preferential basis to Cementrum - an arm of Heidelberg. The issue would be made at a price of Rs54 per share as against a closing price of Rs51.65 on the NSE yesterday. The stock closed at Rs52.5 on the NSE today.

The SK Birla group, original promoters of the company, had sold 1.34 crore shares to Heidelberg at a price of Rs72.5, including a non-compete premium of Rs14.5 per share.

Cementrum has also announced an open offer for 3.5 crore shares at a price of Rs58 share. The offer is unconditional and Cementrum would accept the shares tendered without any minimum limit.

After the preferential issue, Heidelberg would hold a 47-per cent stake in the company. Depending on the success of the open offer, Heidelberg may acquire majority control of the company. S K Birla group would continue to hold a small stake of less than 5 per cent.

Heidelberg said it is looking at further acquisitions and is talking to other small domestic cement companies. Mysore Cements has a capacity of 2 million tonnes per annum and Heidelberg is looking at a total capacity of up to 10 million tonnes in the country.

The new management of Mysore Cements would consider a reduction of outstanding debt, which is currently in excess of Rs250 crore. The company's board has also approved an issue of 1.275 crore equity shares at par to IFCI on conversion of part of the outstanding debt.