Three companies — Ultimate Logistics Solutions Pvt Ltd, Metallurgical Engineering Equipment Ltd (MEEL) and the BSE-listed Ushdev International — have together announced an open offer to buy 27.15 crore shares of Lloyds Steel for a price of Rs 11.65 a share.
If the offer is fully accepted, the acquirers will spend Rs 316.38 crore for 26 per cent of the ‘emerging voting capital’ of Lloyds Steel.
At Lloyds Steel’s extraordinary general meeting on Saturday, shareholders approved a resolution to issue 38 crore shares on preferential basis to Ultimate Logistics and MEEL, “at a price of Rs 10 per share higher than the price calculated in accordance with SEBI guidelines.”
It may be remembered that in March, Lloyds Steel had allotted 8.15 crore shares each to Ultimate Logistics and MEEL (then known as Siddharth Holdings) at Rs 11.65 a share.
To facilitate these, the company had increased its authorised share capital from Rs 750 crore to Rs 2,000 crore.
In the current open offer, Ultimate Logistics and MEEL have been named as ‘acquirers’, while Ushdev International comes under ‘Persons acting in concert’. There is no mention of whether or how many shares Ushdev International would buy.
In the nine-month financial year ended March 2012, Lloyds Steel achieved a turnover of Rs 3,848 crore (net of excise) on which it made a net loss of Rs 73.45 crore.
Ushdev International, which is the ‘person acting in concert’ in this open offer, is mainly into steel production, but also produces power from windmills. In 2011-12, the company achieved a gross turnover of Rs 5,860 crore on which it made a net profit of Rs 72.34 crore.
On the BSE today, the shares of Lloyds Steel are currently trading at Rs 10.61, which is 4.95 per cent higher than the previous close. The shares of Ushdev International are trading at Rs 250.
SBI, ARCIL have chunks of shares
State Bank of India and Asset Reconstruction Company of India Ltd (ARCIL) are among companies that have a large number of shares of Lloyds Steel.
State Bank was allotted 4.92 crore of Lloyds Steel shares in March at Rs 11.65 a share in part conversion of its loans to the company.
ARCIL, which is in the business of buying of bad loans from lenders and recovering dues, was allotted 2.89 crore shares.