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| Arcelor completes Uttam Galva stake buyout |
| BS Reporter / Mumbai Mar 26, 2010, 00:18 IST |
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The world’s largest steel maker, ArcelorMittal, has completed the buyout of an additional 4.9 per cent stake in specialty steel maker Uttam Galva from its promoters for an estimated Rs 75-80 crore.
This has taken ArcelorMittal’s total holding in the company to 33.8 per cent for an estimated Rs 500 crore.
The Mumbai-based Uttam Galva, which has a capacity of 800,000 tonnes, announced in September an agreement that would entitle the billionaire L N Mittal-promoted steel company to become a co-promoter in Uttam Galva.
This involved a two-stage process. The first, an open offer, was made by ArcelorMittal to buy 29 per cent stake from common shareholders. The second step involved buying a 5 per cent stake from the promoter Miglani family.
ArcelorMittal completed the open offer to buy a stake of around 29 per cent in Uttam Galva Steel in February. The offer for Rs 120 a share, translating into Rs 422 crore, saw 100 per cent participation. It is after that process that the second step of buying another 5 per cent stake in the company has been completed now.
“We have bought the 4.99 per cent at the open offer price of Rs 120 a share,” an ArcelorMittal spokesperson said. “It has been bought in multiple tranches and we can confirm that all transactions are completed now,” she added.
Now the Miglani family is left with a 38 per cent holding in the company, according to Ankit Miglani, director (commercials) at the company. “There are no plans to change the holdings now,” he added.
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