New Delhi, March 25: ArcelorMittal on Thursday said it has acquired another 4.9 percent stake in steel maker Uttam Galva for an estimated Rs 75-80 crore, taking the total shareholding in the domestic firm to 33.8 percent.
“We have completed the acquisition of 4.9 percent stake and now our total shareholding is 33.8 percent in Uttam Galva,” a company spokesperson told a news agency.
Officials from Uttam Galva confirmed the development and estimated the deal to be around Rs 75-80 crore.
“We have bought the 4.99 percent at the open offer price of Rs 120 a share,” the ArcelorMittal spokesperson added.
However, it could not be ascertained when did the share sale happen. Uttam Galva had earlier hoped to conclude the deal by February-end.
Pursuant to the successful competition of the stake purchase by the world’s largest steel producer, Uttam Galva promoters–the Miglani family– now hold about 38 percent stake in the leading galvanised steel maker.
Last Month, ArcelorMittal had said that it had acquired 28.8 percent stake in Uttam Galva through the open offer launched earlier.
Initially, the NRI billionaire L N Mittal-led firm had entered into a share purchase agreement to buy 5.6 percent stake in Uttam Galva. But later, pursuant to changes in Uttam Galva’s equity structure, the promoters’ stake sale had come down to 4.9 percent.
The two companies had entered into a co-promotion pact last year.
–PTI