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JSW’s open offer for Ispat to be launched on 17 March

JSW’s open offer for Ispat to be launched on 17 March
PTI
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First Published: Mon, Mar 14 2011. 07 49 PM IST
Updated: Mon, Mar 14 2011. 07 49 PM IST
New Delhi: Sajjan Jindal-led JSW Steel on Monday said its open offer for the 20% additional stake in Ispat Industries will begin on 17 March, after market watchdog Sebi gave its clearance for the Rs2,157 crore acquisition.
The offer, through which the JSW Steel has offered to buy up to 20% stake from public shareholders of Ispat at a price of Rs20.54 per share, will close on 5 April, JSW Steel said in a filing to the Bombay Stock Exchange.
In December last year, the Sajjan Jindal-led company had entered into a Rs2,157 crore deal to acquire a 41.29% stake in Ispat through preferential issue of fresh shares at a price of Rs19.85 apiece.
The offer was earlier scheduled on 12 February, but got delayed due to lack of Sebi’s approval for the same.
The re-scheduled open offer has been announced by JSW Steel after getting the clearance from Sebi, which had sought some clarifications before granting a go-ahead.
The JSW-Ispat deal has an enterprise value of about Rs12,000 crore after paying all the debts and working capital loans of Ispat, estimated to be about Rs9,500-9,700 crore.
The deal would make JSW Steel as the largest domestic steelmaker, with a combined capacity of over 14 million tonnes per annum capacity.
Any company buying more than 15% in a listed company needs to mandatory make an offer to buy 20% additional stake from public shareholders and Sebi’s approval is required for that offer.
JSW scrip closed 2.85% up at Rs927.55 a piece on the Bombay Stock Exchange, while Ispat Industries’ shares were trading 0.23% up at Rs22 a piece.
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First Published: Mon, Mar 14 2011. 07 49 PM IST
More Topics: JSW | Ispat | Open offer | Shares | Stake sale |