Sajjan Jindal-led JSW Steel today said it would acquire 74 per cent state in JSW Praxair Oxygen Pvt Ltd for Rs 240 crore in cash. The latter produces industrial gases such as oxygen, nitrogen and argon. It has two air separation plants, each with a capacity of 2,500 tonnes per day, in Bellary District of Karnataka.
“JSW Steel has executed a share purchase agreement with Praxair India Pvt Ltd to acquire their entire shareholding of 74 per cent in JPOPL for a cash consideration of Rs 240 crore,” it said.
JSW Steel holds 26 per cent of the equity shares of JPOPL and post the aforesaid acquisition, JPOPL would become a wholly-owned subsidiary of the company, it added.
The firm sources industrial gases from JPOPL amongst others at prices based on long term contracts.
"The said acquisition is strategic in nature as it will provide the company the benefit of backward integration of this critical input," JSW Steel said.
Deloitte Touche Tohmatsu India LLP and Bharucha & Partners, Advocates and Solicitors, carried out financial and legal due diligence, respectively for the company, it added.
Shares of JSW Steel were trading at Rs 1,746.05, up 1.23 per cent during the pre-close session on BSE.