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JSW Steel merges with JSW Ispat; share swap fixed at 1:72 - Economic ...

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RELATED ARTICLES JSW Steel likely to merge with JSW Ispat, announcement...
August 28, 2012

JSW Steel merges with JSW Ispat; share swap fixed at 1:72
ET Bureau Sep 2, 2012, 06.49AM IST

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JSW Steel to merge JSW Ispat; share swap ratio fixed at 1:72
September 1, 2012

Tags: share swap

JSW Ispat Steel Ltd.

| Sajjan Jindal | merger & acquisition | KPMG | JSW Steel Ltd. | JSW Steel | | BSE

India's JSW Steel sees profit from Ispat unit in 18-24...


July 25, 2012

IN-DEPTH COVERAGE Jsw Steel Ispat Industries

MUMBAI: In separate meetings the boards of JSW Steel and JSW Ispat on Saturday approved a proposal to merge the two companies that will create India's second-largest private steelmaker by capacity and pave the way for a larger role by Japanese steel major JFE. The Sajjan Jindal-led JSW Steel, which had acquired the erstwhile Ispat Industries in 2010 for Rs 2,157 crore, will now merge JSW Ispat with itself and gain from marketing synergies and tax gains, officials of the two companies said at a conference in Mumbai. "The merger is an important step toward creating a world-class global steel company. JSW Ispat brings several unique advantages and the transaction will help realise several integration benefits," said JSW Steel chairman Sajjan Jindal, who is the managing director of JSW Ispat. One equity share of JSW Steel will be issued for every 72 shares of JSW Ispat. The merger will make the consolidated JSW Steel, the second-largest in India at 14.3 million tonnes, a shade below SAIL which has an installed capacity of about 14.5 million tonnes.JSW Steel will issue 1.86 crore new equity shares and increase its outstanding shares to 24.17 crore and its equity capital to Rs 241.72 crore. JSW Steel will also issue 48.54 crore new 0.01% non convertible cumulative redeemable preference shares to the preference shareholders of JSW Ispat, increasing its preference share capital to Rs 764.44 crore. Post merger, promoters of JSW Steel will own 35.12% in the merged entity, while 14.92% shall be held by Japan's JFE Steel. The remaining 49.96% will be held by the public shareholders. There is scope for JFE to increase its shareholding as the earlier threshold of 15% for an open offer has been raised to 25%, said one JSW official who asked not to be named. The scheme is subject to approval of the High Court, lenders, creditors, preference shareholders, equity shareholders, BSE, NSE, the Competition Commission of India and other approving authorities. JSW Steel expects to complete the process of merger by the end of this financial year. KPMG did the valuation for JSW Steel, while PWC was mandated for JSW Ispat.

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12/8/2012 9:54 PM

JSW Steel merges with JSW Ispat; share swap fixed at 1:72 - Economic ...

http://articles.economictimes.indiatimes.com/2012-09-02/news/3353618...

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