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JSW defers open offer for Ispat Industries

JSW defers open offer for Ispat Industries
PTI
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First Published: Mon, Feb 07 2011. 03 25 PM IST
Updated: Mon, Feb 07 2011. 03 25 PM IST
Mumbai: JSW Steel has deferred the open offer for picking up additional 20% stake in Ispat Industries, which was scheduled to hit the market on 12 February.
The revised schedule for the open offer will be announced separately after receiving Sebi’s approval, JSW Steel said in a filing to the Bombay Stock Exchange.
“...the shareholders of the target Company are requested to note that the date of opening of the offer and other relevant dates mentioned in the public announcement under ‘schedule of the activities pertaining to the offer´ will undergo a change and the revised schedule of activities will be announced separately after receiving Sebi’s approval to the letter of offer,” JSW’s filing said.
In December 2010, the Sajjan Jindal-led company had entered into a Rs2,157 crore deal with Ispat to acquire a 41.29% stake in the latter through preferential issue of fresh shares at a price of Rs19.85 apiece.
The deal has an enterprise value of about Rs12,000 crore after paying all the debts and a working capital loan of Ispat Industries, estimated to be about Rs9,500-9,700 crore.
Enam Securities, which is managing the open offer, had said in a public announcement in December that mandatory open offer to pick up an additional 20% stake, would be launched between 12 February to 3 March 2011 at a price of Rs20.54 a share in Ispat Industries.
Through the open offer, JSW Steel has proposed to acquire 64.72 crore shares of Ispat, at a face value of Rs10 each of the total shares.
The open offer would cost Rs1,329.43 crore to the JSW, which post acquisition would be the largest domestic steel producer, the announcement had said.
According to market regulator Sebi’s guidelines, any company buying more than 15% in another firm will have to make an offer to buy 20% additional stake.
Shares of both the companies -- JSW Steel and Ispat Industries -- were in green at 14:50 hours on the Bombay Stock Exchange. JSW’s shares were up by 0.8% at Rs904 apiece, while Ispat’s scrips were traded at Rs24.4 per share, up 0.21%.
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First Published: Mon, Feb 07 2011. 03 25 PM IST