ArcelorMittal Increases Stake in Uttam Galva
ArcelorMittal has acquired 29% stake in Uttam Galva Steels Ltd for Rs 422cr through open offer, taking its holding in the company to 34.42%.
ArcelorMittal has acquired 3.52cr shares at a price of Rs 120 a share, aggregating to Rs 422cr.
The company had signed a share purchase agreement in september 2009 (reported here) with the R.K Miglani family ( the existing promoter) for acquisition of 5.6% stake in the company after which ArcelorMittal was acquire shares of Uttam Galva through an open offer for 30% stake, to be completed in 3 stages. Post deal, ArcelorMittal and current promoters were to be equal partners in the company.
ArcelorMittal chief LN Mittal had planned to enter India a couple of years ago. However, Mittal’s big plan in Orissa and in Jharkhand to make a total of about 24 million tonne of steel has not taken any shape yet as the company has been caught in a lot of regulatory and government hassles.
ArcelorMittal will now build a plant in Karnataka with a capacity to produce six million metric tonnes of steel with an investment of Rs 30,000cr ($6.5bn). The plant will be located in Torangal.
Past Deals in the same sector:
| Date | Target | Acquirer | Size |
| Sep-09 | Bowen Energy Ltd | Bushan Steel Ltd | - |
| Aug-09 | Shree Precoated Steels Ltd | Essar Steel Ltd | 135 |
| Jun-09 | Sponge Iron India Ltd | NMDC Ltd. | - |
Source: Financial Express
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KVEZAR VIEW
| Date | Transaction | Type | Buyer | Size ($mn) |
|---|---|---|---|---|
| 02/02/10 | Uttam Galva- ArcelorMittal Open Offer | M&A | ArcelorMittal SA | 91.42 |
| 03/09/09 | Uttam Galva - ArcelorMittal SA | M&A | ArcelorMittal SA | 103.00 |
| Date | Type | Buyer | Target | Size ($mn) | State |
|---|---|---|---|---|---|
| 03/02/12 | M&A | Siddharth Holdings Private Limited | Lloyds Steel Industries Limited | 38.65 | Announced |
| 24/01/12 | IPO / Offerings | Great Eastern Energy Corporation Limited | - | Planned | |
| 23/01/12 | M&A | Tata Power Company Limited | MEC Coal | - | Planned |
| 16/12/11 | M&A | JSW Energy Limited | South African Coal Mining | - | Completed |
Company |
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| Name | Promoters | Office | Competitor | Website |
|---|---|---|---|---|
| Uttam Galva Steels Limited | Rajinder Miglani Family | Uttam House 69, D'Mello Road Mumbai Maharashtra- 400009 |
Tata Steel Limited Steel Authority of India Limited Essar Steel Limited Jindal Steel And Power Limited Uttam Galva Ferous Limited (Brahmani Industries Limited) |
www.uttamgalva.com |
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