JSW Steel has entered into a legally binding share purchase agreement to acquire the remaining 26.45% stake of JSW Vallabh Tinplate for a total sum of Rs 35 crore from the existing third party shareholders as it will add strategic value, the company said.
“JSW Steel Limited (“Company”) has entered into a legally binding share purchase agreement to acquire JSW Vallabh Tinplate Private Limited in one or more tranches, 1,32,37,227 equity shares of INR 10/- each,” the company said in a BSE filing on Tuesday.
Upon closing of the transaction JSW Vallabh Tinplate will become a wholly-owned subsidiary of the company, with the company’s direct and indirect shareholding in JSW Vallabh Tinplate increasing from 73.55% to 100%, the company said.
“The prospects for tinplate are encouraging and it will be of strategic importance for JSW Steel Ltd to become an important player in this segment,” the company said in its statement.
The company clarified the acquisition does not fall within related party transaction(s) and the promoter/ promoter group/ group companies do not have any interest in the entity being acquired.
JSW VTPL manufactures tinplate and has a 1,00,000 MT per annum tinplate manufacturing facility in Beopror Village, Rajpura, Patiala District in the State of Punjab in India. The company has clocked a turnover of Rs 534.74 crore during FY 2019-20.
In the year 2014, JSW Steel marked its entry into tinplate business, by acquiring 50% stake in Punjab-based Vallabh Tinplate Pvt Ltd (VTPL) for about Rs 46 crore. VTPL was owned by Vardhman Industries Ltd, however, in the year 2019, JSW Steel completed the acquisition of Vardhman Industries Ltd (VIL) by infusing Rs 63.50 crore into the debt-ridden company.
Source: Economic Times