Mittal to buy 4.9% promoter stake by Feb-end: UttamGalva
Press Trust of India / New Delhi Feb 10, 2010, 18:49 IST
The world's largest steel-maker ArcelorMittal will hike its stake in UttamGalva to 33.7 per cent following a 4.9 per cent promoter stake transfer by the end of this month.
"Pursuant to the successful competition of the open offer, ArcelorMittal now holds 28.8 per cent stake in UttamGalva. Besides, pursuant to change in the equity structure, the promoters' stake sale would come down to 4.9 per cent from the earlier 5.6 per cent," UttamGalva finance director Ankit Miglani said.
"We think the promoter stake sale would be completed by the month end. The stake has been sold at the open offer price of Rs 120 a share," he added.
Last October ArcelorMittal had entered into an agreement to purchase a 5.6 per cent stake in UttamGalva and two months later launched the open offer to buy an additional 29 per cent stake at Rs 120 a share.
"The open offer was originally for 29 per cent.Following conversion of certain convertible bonds, the underlying equity structure of the company has been changed. So, the open offer has become 28.8 per cent and we are selling 4.9 per cent through a share purchase agreement," Miglani said.
Following the news, UttamGalva shares surged 16.5 per cent today to Rs 123.50 intra-day. It later settled with a gain of 6.32 per cent at Rs 112.70 on the BSE.
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