Amtek Auto in talks to buy OCL Iron & Steel

Delhi-based Amtek group, promoted by Arvind Dham, is in advanced negotiations to acquire OCL Iron and Steel Ltd (OISL) controlled by Raghu Hari Dalmia.

Sources close to the deal said the transaction would value the company at around Rs 350 crore.

A senior Amtek Auto official said on condition of anonymity that the auto-component group is looking at acquiring a steel company with captive iron ore and coal mines as part of its strategy of backward integration.

In 2007-08, OISL had reported revenues of Rs 177 crore and net profit of Rs 8.4 crore. The promoters hold 61 per cent of the company.

Sources said Amtek Auto has begun the due diligence process and is expected to close the deal early next month, through a special purpose vehicle that will be funded by the promoters and also partially by the Amtek Auto.

Amtek Auto Chairman said he was not willing to comment on the issue. OISL Managing Director Sabyasachi Mishra also declined comment.

OISL was originally a wholly- owned subsidiary of OCL and was spun off into a separate company in 2006. The company has captive iron ore mines of around 5 million tonnes and coal mines of around 20 million tonnes. It also has a 20,000 tonne a year sponge iron unit and is setting up a blast furnace. The company also has a 14 Mw power plant that is partly run on waste heat from the sponge iron plant and is partly coal based.

Dham had earlier explored the acquisition of Orissa Sponge Iron Ltd, which is now locked in a three-way battle between the promoters, the Singhal brothers of Bhushan Group and Monnet Ispat.

OISL’s share is currently trading at Rs 10.56 on the Bombay Stock Exchange.

image
Business Standard
177 22
Business Standard

Amtek Auto in talks to buy OCL Iron & Steel

Arun Kumar  |  New Delhi 



Delhi-based Amtek group, promoted by Arvind Dham, is in advanced negotiations to acquire OCL Iron and Steel Ltd (OISL) controlled by Raghu Hari Dalmia.

Sources close to the deal said the transaction would value the company at around Rs 350 crore.

A senior Amtek Auto official said on condition of anonymity that the auto-component group is looking at acquiring a steel company with captive iron ore and coal mines as part of its strategy of backward integration.

In 2007-08, OISL had reported revenues of Rs 177 crore and net profit of Rs 8.4 crore. The promoters hold 61 per cent of the company.

Sources said Amtek Auto has begun the due diligence process and is expected to close the deal early next month, through a special purpose vehicle that will be funded by the promoters and also partially by the Amtek Auto.

Amtek Auto Chairman said he was not willing to comment on the issue. OISL Managing Director Sabyasachi Mishra also declined comment.

OISL was originally a wholly- owned subsidiary of OCL and was spun off into a separate company in 2006. The company has captive iron ore mines of around 5 million tonnes and coal mines of around 20 million tonnes. It also has a 20,000 tonne a year sponge iron unit and is setting up a blast furnace. The company also has a 14 Mw power plant that is partly run on waste heat from the sponge iron plant and is partly coal based.

Dham had earlier explored the acquisition of Orissa Sponge Iron Ltd, which is now locked in a three-way battle between the promoters, the Singhal brothers of Bhushan Group and Monnet Ispat.

OISL’s share is currently trading at Rs 10.56 on the Bombay Stock Exchange.

RECOMMENDED FOR YOU

Amtek Auto in talks to buy OCL Iron & Steel

Delhi-based Amtek Auto group, promoted by Arvind Dham, is in advanced negotiations to acquire OCL Iron and Steel Ltd (OISL) controlled by Raghu Hari Dalmia.

Delhi-based Amtek group, promoted by Arvind Dham, is in advanced negotiations to acquire OCL Iron and Steel Ltd (OISL) controlled by Raghu Hari Dalmia.

Sources close to the deal said the transaction would value the company at around Rs 350 crore.

A senior Amtek Auto official said on condition of anonymity that the auto-component group is looking at acquiring a steel company with captive iron ore and coal mines as part of its strategy of backward integration.

In 2007-08, OISL had reported revenues of Rs 177 crore and net profit of Rs 8.4 crore. The promoters hold 61 per cent of the company.

Sources said Amtek Auto has begun the due diligence process and is expected to close the deal early next month, through a special purpose vehicle that will be funded by the promoters and also partially by the Amtek Auto.

Amtek Auto Chairman said he was not willing to comment on the issue. OISL Managing Director Sabyasachi Mishra also declined comment.

OISL was originally a wholly- owned subsidiary of OCL and was spun off into a separate company in 2006. The company has captive iron ore mines of around 5 million tonnes and coal mines of around 20 million tonnes. It also has a 20,000 tonne a year sponge iron unit and is setting up a blast furnace. The company also has a 14 Mw power plant that is partly run on waste heat from the sponge iron plant and is partly coal based.

Dham had earlier explored the acquisition of Orissa Sponge Iron Ltd, which is now locked in a three-way battle between the promoters, the Singhal brothers of Bhushan Group and Monnet Ispat.

OISL’s share is currently trading at Rs 10.56 on the Bombay Stock Exchange.

image
Business Standard
177 22
Widgets Magazine

More News

  • Signs of realty revival ahead of festive season Signs of realty revival ahead of festive season
  • Amit Chandra Bain Capital's Amit Chandra joins Tata Sons board
Widgets Magazine
Widgets Magazine

Upgrade To Premium Services

Welcome User

Business Standard is happy to inform you of the launch of "Business Standard Premium Services"

As a premium subscriber you get an across device unfettered access to a range of services which include:

  • Access Exclusive content - articles, features & opinion pieces
  • Weekly Industry/Genre specific newsletters - Choose multiple industries/genres
  • Access to 17 plus years of content archives
  • Set Stock price alerts for your portfolio and watch list and get them delivered to your e-mail box
  • End of day news alerts on 5 companies (via email)
  • NEW: Get seamless access to WSJ.com at a great price. No additional sign-up required.
 

Premium Services

In Partnership with

 

Dear Guest,

 

Welcome to the premium services of Business Standard brought to you courtesy FIS.
Kindly visit the Manage my subscription page to discover the benefits of this programme.

Enjoy Reading!
Team Business Standard