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JSW Steel on Thursday said it has raised the open offer price to acquire 20 per cent additional stake in the Ispat Industries to Rs 22.25 per share.
The company had earlier offered Rs 20.54 per share to Ispat shareholders and on March 17, had launched the open offer to acquire up to 64.72 crore shares (or 20 per cent additional stake), following the approval of market regulator SEBI early this month. The open offer will close on April 5.
“...the acquirer hereby voluntarily increases the Offer Price from Rs 20.54 per equity share to Rs 22.25 per equity share (“Revised Offer Price“),” said Enam Securities, on behalf of JSW Steel, in a filing to the Bombay Stock Exchange.
It added that the JSW Steel will now pay up to Rs 1440.11 crore to buy up to 20 percent shares in the Ispat Industries.
In December last year, the Sajjan Jindal-led company had entered into a Rs 2,157 crore deal to acquire a 41.29 per cent stake in Ispat through preferential issue of fresh shares at a price of Rs 19.85 apiece.
The JSW-Ispat deal has an enterprise value of about Rs 12,000 crore after paying all the debts and working capital loans of Ispat, estimated at about Rs 9,500-9,700 crore.
The deal, together with new 3.2 million tonne per annum capacity coming up at its Vijaynagar plant in April, would make JSW Steel the largest domestic steelmaker, with a combined capacity of over 14 MTPA.
Any company buying more than 15 per cent in a listed company needs to mandatorily make an offer to buy 20 per cent additional stake from public shareholders and SEBI’s approval is required for that offer.
Post revision the open offer price, scrips of JSW were trading in red in the late afternoon trade on the Bombay Stock Exchange at Rs 898.50 per share, down 0.4 per cent. The shares of Ispat were up by 2.98 per cent at Rs 22.45.
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