Sumitomo unit to buy 5.88 per cent in Steel Strips Wheels
28 Oct 2010
Sumitomo Metal Industries Ltd, a part of Japan's Sumitomo Group, will acquire a 5.88 per cent equity in Steel Strips Wheels for around Rs44.2 crore.
Steel Strips Wheels Ltd proposes to issue 8,50,000 shares of Rs10 face value to Sumitomo Metals at a price of Rs520 per share - a premium pf Rs510 a share - on a preferential basis, the company said in a filing with the Bombay Stock Exchange (BSE).
The equity issue is being made on a preferential allotment basis under the SEBI (Issue of Capital and Disclosure Requirements) Regulations 2009, and is subject to shareholder and statutory approvals, the company said in the filing.
After the proposed issue, the company's share capital would increase from Rs13.62 crore divided into Rs10 shares each to Rs14.47 crore divided into 1,44,66,170 equity shares of Rs10 each.
The deal is expected to close by 30 November 2010, the company said.
Sumitomo Metal Industries, a member of the Sumitomo Group, has been engaged in the steel business for over 100 years.
