ArcelorMittal has acquired 29% stake in Uttam Galva Steels Ltd for Rs 422cr through open offer, taking its holding in the company to 34.42%.
ArcelorMittal has acquired 3.52cr shares at a price of Rs 120 a share, aggregating to Rs 422cr.

The company had signed a share purchase agreement in september 2009 (reported here) with the R.K Miglani family ( the existing promoter) for acquisition of 5.6% stake in the company after which ArcelorMittal was acquire shares of Uttam Galva through an open offer for 30% stake, to be completed in 3 stages. Post deal, ArcelorMittal and current promoters were to be equal partners in the company.

ArcelorMittal chief LN Mittal had planned to enter India a couple of years ago. However, Mittal’s big plan in Orissa and in Jharkhand to make a total of about 24 million tonne of steel has not taken any shape yet as the company has been caught in a lot of regulatory and government hassles.

ArcelorMittal will now build a plant in Karnataka with a capacity to produce six million metric tonnes of steel with an investment of Rs 30,000cr ($6.5bn). The plant will be located in Torangal.

Past Deals in the same sector:

Source: Financial Express