JSW’s open offer for Ispat on March 17

JSW Steel said its open offer for the 20 per cent additional stake in Ispat Industries will begin on March 17.

Sajjan Jindal-led JSW Steel said its open offer for the 20 per cent additional stake in Ispat Industries will begin on March 17,after market watchdog SEBI gave its clearance for the Rs 2,157 crore acquisition.

The offer,through which the JSW Steel has offered to buy up to 20 per cent stake from public shareholders of Ispat at a price of Rs 20.54 per share,will close on April 5,JSW Steel said in a filing to the Bombay Stock Exchange.

In December last year,the Sajjan Jindal-led company had entered into a Rs 2,157 crore deal to acquire a 41.29 per cent stake in Ispat through preferential issue of fresh shares at a price of Rs 19.85 apiece.

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The offer was earlier scheduled on February 12,but got delayed due to lack of SEBI’s approval for the same.

The re-scheduled open offer has been announced by JSW Steel after getting the clearance from SEBI,which had sought some clarifications before granting a go-ahead.

The JSW-Ispat deal has an enterprise value of about Rs 12,000 crore after paying all the debts and working capital loans of Ispat,estimated to be about Rs 9,500-9,700 crore.

The deal would make JSW Steel as the largest domestic steelmaker,with a combined capacity of over 14 million tonnes per annum capacity.

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Any company buying more than 15 per cent in a listed company needs to mandatorily make an offer to buy 20 per cent additional stake from public shareholders and SEBI’s approval is required for that offer.

JSW scrip closed 2.85 per cent up at Rs 927.55 a piece on the Bombay Stock Exchange,while Ispat Industries’ shares were trading 0.23 per cent up at Rs 22 a piece.