JSW Steel has deferred the open offer for picking up additional 20 per cent stake in Ispat Industries, which is scheduled to hit the market on February 12.
The revised schedule for the open offer will be announced separately after receiving the Securities and Exchange Board of India 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,” the filing said.
In December 2010, the Sajjan Jindal-led company had entered into a Rs 2,157-crore deal with Ispat to acquire 41.29 per cent stake in the latter through a preferential issue of fresh shares at Rs 19.85 apiece.
The deal has an enterprise value of about Rs 12,000 crore after paying all the debts and a working capital loan of Ispat Industries, estimated to be about Rs 9,500-9,700 crore.
Enam Securities, which is managing the open offer, had said in a public announcement in December that the mandatory open offer to pick up an additional 20 per cent stake would be launched between February 12 to March 3, 2011 at Rs 20.54 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 Rs 10 each of the total shares.
The open offer would cost Rs 1,329.43 crore to JSW, which post acquisition would be the largest domestic steel producer, the announcement had said.
According to SEBI guidelines, any company buying more than 15 per cent in another firm will have to make an offer to buy 20 per cent additional stake.
Shares of JSW Steel ended the session up 0.07 per cent at Rs 897.40 and Ispat Industries down 0.41 per cent at Rs 24.25 per cent on the BSE.