Heidelberg to merge itself and Indorama with Mysore Cements

10 May 2008

German cement maker Heidelberg is consolidating its cement business in India by merging the unlisted Indorama Cement and holding company Heidelberg Cement India with Mysore Cements that it acquired in 2006.

Shareholders of Indorama Cement will receive 1.3544 equity shares of Mysore Cements for each equity share of Indorama, while Heidelberg will receive 0.1469 shares of Mysore Cements for every share of HeidelbergCement India.

Heidelberg holds 55 per cent stake in Mysore Cements.

Heidelberg also plans to increase combined cement capacity to 10-12 million tonnes by 2010-11, from the existing 2.8 million tonnes.

The expansion will place the company as the number three cement-maker, replacing India Cements, which has a capacity of 9 million tonnes.

''The idea is to draw up synergies and save costs, which will be beneficial to our shareholders as it will increase our EPS. It was odd to have an unlisted company and another public listed company,'' said Ashish Guha, managing director, Mysore Cements