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| Sterlite ready to pay $2.565 bn in cash to buy out Asarco |
| BS Reporter / Mumbai Sep 11, 2009, 13:04 IST |
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Indian metal giant Sterlite Industries today stated that it has raised its offer price for purchase for bankrupt US copper miner Asarco to $2.56 billion from its earlier bid of $2.13 billion.
Sterlite's bid has been continuously challenged by Mexican miner Grupo Mexico for the assets of Asarco who had placed a bid of $2.47 billion earlier.
Sterlite in a statement sent to the Bombay Stock Exchange said, "After extensive discussion and review, in order to provide full cash payment to asbestos creditors... Sterlite increased its offer from $2.13 billion to $2.56 billion cash".
The increase was to allow late and subordinate claims and to provide surplus cash after closing for the smooth continued operations of Asarco, it further added.
"With this change (in offer price), 100 per cent of the creditors interest in SCC litigation trust will be owned by Sterlite", the statement said.
Sterlite shares were trading at Rs 740.65, down by 3.40 per cent on the Bombay Stock Exchange as against the company's previous day closing price of Rs 766.76 per share.
Modifying its bid for bankrupt US-based copper miner Asarco, Sterlite Industries is understood to have offered $2.565 billion in an all cash deal.
"Sterlite Industries has modified its offer. We are now offering $2.565 billion in an all cash deal. There will be no deferred payment in form of bonds," a senior company official said requesting anonymity.
The development comes close to the Texas bankruptcy code recommending rival Grupo Mexico's bid of around $2.47 billion against Sterlite's previous bid.
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