New Delhi: The world’s largest steel-maker ArcelorMittal will hike its stake in UttamGalva to 33.7% following a 4.9% promoter stake transfer by the end of this month.
“Pursuant to the successful competition of the open offer, ArcelorMittal now holds 28.8% stake in UttamGalva. Besides, pursuant to change in the equity structure, the promoters’ stake sale would come down to 4.9% from the earlier 5.6%,” UttamGalva finance director Ankit Miglani said.
“We think the promoter stake sale would be completed by the month end. This stake will be sold at the open offer price of Rs120 a share,” he added.
Last October ArcelorMittal had entered into an agreement to purchase a 5.6% stake in UttamGalva and two months later launched the open offer to buy an additional 29% stake at Rs120 a share.
“The open offer was originally for 29%.Following conversion of certain convertible bonds, the underlying equity structure of the company has been changed. So, the open offer has become 28.8% and we are selling 4.9% through a share purchase agreement,” Miglani said.
Following the news, UttamGalva shares surged 16.5% on Wednesday to Rs123.50 intra-day. It later settled with a gain of 6.32% at Rs112.70 on the BSE.