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Indices down 0.5% as rupee breaches 56 markMay 23 2012 16:25
JSW Steel to acquires Ispat Industries
MUMBAI (makemystocks): JSW Steel Ltd is all set to pay Rs 21.57 billion for acquiring 1.09 billion equity shares of Ispat Industries Ltd on a preferential basis at Rs 19.85 a share.
JSW Steel will make an open offer to shareholders of Ispat Industries to acquire additional stake, the company said in a release to stock exchanges.
JSW Steel will become promoter of Ispat Industries and both the companies will have the right to take part in future capital issuances of Ispat, the release said.
Ispat promoters will have “certain affirmative rights” till JSW maintains an agreed percentage holding, the Kolkata-based steel maker said.
The name of the company will be changed incorporating the names of both major shareholders, the Ispat release said.
The board of JSW Steel met on Monday to approve the acquisition of a majority stake in Ispat Industries and decide the price.
Ispat ranks third in steel capacity while valuation-wise it is lowest, making a strong case for acquisition, according to market analysts.
However, shares of Ispat Industries fell over 15% in early trade Tuesday as JSW Steel's offer price of Rs 19.85 a share fell below market expectations.
JSW Steel will make an open offer to shareholders of Ispat Industries to acquire additional stake, the company said in a release to stock exchanges.
JSW Steel will become promoter of Ispat Industries and both the companies will have the right to take part in future capital issuances of Ispat, the release said.
Ispat promoters will have “certain affirmative rights” till JSW maintains an agreed percentage holding, the Kolkata-based steel maker said.
The name of the company will be changed incorporating the names of both major shareholders, the Ispat release said.
The board of JSW Steel met on Monday to approve the acquisition of a majority stake in Ispat Industries and decide the price.
Ispat ranks third in steel capacity while valuation-wise it is lowest, making a strong case for acquisition, according to market analysts.
However, shares of Ispat Industries fell over 15% in early trade Tuesday as JSW Steel's offer price of Rs 19.85 a share fell below market expectations.
