Financial Daily from THE HINDU group of publications
Wednesday, Apr 21, 2004
Financial Daily from THE HINDU group of publications Wednesday, Apr 21, 2004 |
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Corporate
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Mergers & Acquisitions Citicorp may take 14.16 pc stake in Monnet Ispat Our Bureau
New Delhi , April 20 CITICORP International Finance Corporation is all set to acquire 14.16 per cent stake in Monnet Ispat Ltd for Rs 35.27 crore. The fund will be utilised for expanding the company's Raigarh unit manufacturing sponge iron and mild steel. Knowledgeable sources said that the deal is likely to be completed soon. Citicorp International has recently got the approval from the Foreign Investment Promotion Board (FIPB) to acquire the stake in the company. This round of expansion is expected to create 400 more employment opportunities. The Citi Bank investment arm will pick up 35.27 lakh equity shares of Rs 10 each in the Indian sponge iron manufacturer at a premium of Rs 90 for which the company will issue fresh equities. After this new investment, foreign equity in Monnet Ispat will increase to about 20 per cent of its total paid-up capital. The Indian Fund and Merrill Lynch Capital Markets currently hold 10.81 lakh equity shares in the steel-maker. Besides, Non-resident Indians and overseas corporate bodies hold another 0.15 per cent. After the deal, the resident holding in the company will get reduced to 80.31 per cent from the present 94.45 per cent.
More Stories on : Mergers & Acquisitions | Steel
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