JSW Steel has made an open offer to buy up to 20 per cent equity of Ispat Industries at Rs20.54 a share, after announcing a $3-billion deal to acquire the debt-laden company.
JSW Steel had said on Tuesday it will buy a 41.3-per cent stake in Ispat through a preferential issue of fresh shares, which will reduce the Ispat promoters' stake to 26 per cent.
Lenders to Ispat own 12 per cent. JSW will refinance Ispat's existing debt of Rs7,000 crore at a lower cost of borrowing by using the strength of its balance sheet.
The deal will make the Jindal-controlled JSW the country's largest steelmaker by capacity.
Ispat Industries is part of the M L Mittal business family to which global steel tycoon L N Mittal also belongs, though he is uninvolved with its management.
Under the agreement structured by Mumbai-based Economic Laws Practice, Ispat Industries will issue 108.66 crore fresh equity shares to JSW at Rs19.85 a share, for Rs2,157 crore.