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Journalism of Courage
Pending regulatory clearances may delay ArcelorMittal’s acquisition of additional stakes in Uttam Galva through an open offer,although the steel behemoth aims to complete the deal by mid-December.
The proposed deal is likely to be discussed in the Foreign Investment Promotion Board (FIPB) meeting scheduled for tomorrow. FIPB recommends overseas investments in India.
Asked if the proposed open offer to acquire 29.4 per cent additional stake in the Indian firm could be delayed,ArcelorMittal Chairman and CEO L N Mittal during a conference call yesterday said,”The process for (acquiring additional stake in) Uttam Galva is already on. We are seeking different regulatory approvals. We hope this process will be completed by mid-December of this year.
“There could be a slight delay in getting the approval from SEBI,so there could (be) few days delay in (starting the open offer) but we are still on target to complete this transaction by middle of December.”
The world’s largest steel maker had last month entered into a partnership agreement with Uttam Galva and said it would buy 35 per cent stake in the firm through a mixed route of share purchase and open offer from existing promoters.
The company has bought 5.6 per cent stake in Uttam Galva and plans to launch the open offer to buy the additional stake in the company at Rs 120 a share on October 31,and close on November 19,2009.
