Mittal stake buy in Uttam Galva by Feb

NEW DELHI: The world’s largest steel-maker ArcelorMittal will hike its stake in Uttam Galva to 33.7% following a 4.9% promoter stake transfer by the end of this month.

“Pursuant to the successful competition of the open offer, ArcelorMittal now holds 28.8% stake in Uttam Galva. Besides, pursuant to change in the equity structure, the promoters’ stake sale would come down to 4.9% from the earlier 5.6%,” Uttam Galva finance director Ankit Miglani said.

“We think the promoter stake sale would be completed by the month end. The stake has been sold at the open offer price of Rs 120 a share,” he added.

Last October, ArcelorMittal had signed an agreement to purchase a 5.6% stake in Uttam Galva and two months later launched the open offer to buy an additional 29 per cent stake at Rs 120 a share.

“The open offer was originally for 29 per cent.Following conversion of certain convertible bonds, the underlying equity structure of the company has been changed. So, the open offer has become 28.8 per cent and we are selling 4.9 per cent through a share purchase agreement,” Miglani said.

Following the news, UttamGalva shares surged 16.5 per cent today to Rs 123.50 intra-day. It later settled with a gain of 6.32 per cent at Rs 112.70 on the BSE.