Sterlite edges lower post Asarco deal; stock down 2%
Shares of Sterlite Industries traded lower Monday despite the company announcing that it will pay $1.7 billion in cash and notes to buy bankrupt US copper miner Asarco LLC, lower than the $2.6 billion it offered last year.
By ET Bureau |
MUMBAI: Shares of Sterlite Industries traded lower Monday despite the company announcing that it will pay $1.7 billion in cash and notes to buy bankrupt US copper miner Asarco LLC, lower than the $2.6 billion it offered last year.
It has agreed with Asarco to pay $1.1 billion in cash, and $600 million in senior secured non-interest bearing promissory notes, to be paid over a period of nine years, for substantially all the operating assets of the US firm.
It has pushed last week's all-share merger deal between two Mukesh Ambani group firms, RIL and RPL, valued at about Rs 8,500 crore, out of the ten largest ever M&A deals involving an Indian firm.
After RIL-RPL merger, Seterlite's Asarco buyout is the only second billion-dollar M&A deal striked by any Indian entity so far this year.
At 10:30 am, the company���s shares were down 1.96 per cent at Rs 245.15 on the BSE.
It has agreed with Asarco to pay $1.1 billion in cash, and $600 million in senior secured non-interest bearing promissory notes, to be paid over a period of nine years, for substantially all the operating assets of the US firm.
It has pushed last week's all-share merger deal between two Mukesh Ambani group firms, RIL and RPL, valued at about Rs 8,500 crore, out of the ten largest ever M&A deals involving an Indian firm.
After RIL-RPL merger, Seterlite's Asarco buyout is the only second billion-dollar M&A deal striked by any Indian entity so far this year.
At 10:30 am, the company���s shares were down 1.96 per cent at Rs 245.15 on the BSE.
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