SBI Capital Markets has made an open offer on behalf of ArcelorMittal to acquire 29.4% stake of secondary steel producer Uttam Galva at INR 120 a share, amounting to a total outgo of INR 422.71 crore.
The offer will be open between October 31 and November 19.
ArcelorMittal had inked a deal last week with the promoters of Uttam Galva to pick up 5.6% stake and raise it further to become a co promoter. With the share price of Uttam Galva on BSE closing at INR 138 on Wednesday, it is unlikely that ArcelorMittal will be able to garner the targeted 3.52 crore equity shares from the capital market.
Mr Ankit Miglani director commercial of Uttam Galva had categorically stated that the open offer price will not be revised higher. He said that “In the event of the open offer being undersubscribed, the promoters group will offload further from their total holding of 40% so that both the companies own 22.5% each.”
(Sourced from http://www.steelguru.com/news/index/2009/09/11/MTExMjAx/UGSL_open_offer_from_October_31.html)
Thursday, September 10, 2009
UGSL open offer from October 31
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