ArcelorMittal makes open offer for Uttam Galva Steel

India-origin billionaire Lakshmi Mittal-led ArcelorMittal today made an offer to buy an additional 29.4 per cent stake in domestic steel firm Uttam Galva Steel at Rs 120 a share.     

In a public announcement made to the shareholders, ArcelorMittal said its open offer would begin on October 31, and close on November 19, 2009.     

The open offer comes following ArcelorMittal's announcement to snap up a 35 per cent stake in Uttam Galva through a mixed route of share purchase from existing promoters and open offer.     

The total consideration payable under the open offer would be up to Rs 422.71 crore.     

The offer is being made to all the shareholders of Uttam Galva Steel to acquire over 3.52 crore (3,52,26,233) shares of the company that form 29.39 per cent of the existing voting capital at a price of Rs 120 a share, it said.     

However, taking into account the equity shares of the company to be issued on conversion of outstanding FCCBs along with the total outstanding share capital, the stake to be acquired comes to 25.76 per cent of the emerging voting capital.     

SBI Capital Markets made the open offer announcement on behalf of ArcelorMittal, Netherlands, today.     

Last week, ArcelorMittal said it has entered into a share purchase agreement on September 3 with Uttam Galva's existing promoter R K Miglani family for acquiring 5.6 per cent stake.