Interestingly, the acquisition was through a Special Purpose Vehicle between a consortium of financial & the strategic investor (JSW Steel Limited). The merger of JSW Ispat Special Products Limited with the strategic investor was inevitable however, the journey from the acquisition to the merger was planned to facilitate promised returns to the financial investor as well as to have a minimum dilution of promoters holding post-merger. In this article, we have tried to study the various aspects from acquisition to announced merger.
JSW Steel Limited ("JSW Steel" or Transferee Company") is the flagship company of the diversified conglomerate JSW Group. JSW Steel is a leading integrated steel manufacturer in India with a current consolidated domestic crude steel capacity of 27 million tonnes per annum (MTPA). The equity shares of the company are listed on nationwide bourses.
JSW Ispat Special Products Limited ("JSW Ispat" or "Transferor Company 2") is engaged in manufacturing and marketing sponge iron, pellets, steel and ferro alloys. It has an integrated steel plant at Raigarh, which is currently operating at a capacity of ~0.95 MTPA which is in the process of expansion to 1.5 MTPA. It also has another unit for steel production at Raipur with 0.25 MTPA capacity. The equity shares of the company are listed on nationwide bourses.
Creixent Special Steels Limited ("Creixent" or "Transferor Company 1") a special purpose joint venture formed by JSW Steel & AION Investments Private II Ltd. (AION) to acquire controlling stake in JSW Ispat. As on date, Creixent directly holds 48.12% equity stake (effective stake is 56.89%) in JSW Ispat. The nonconvertible debentures of Creixent are listed on the wholesale debt market segment of BSE Limited.
The History
هذه القصة مأخوذة من طبعة August 2022 من M & A Critique.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك ? تسجيل الدخول
هذه القصة مأخوذة من طبعة August 2022 من M & A Critique.
ابدأ النسخة التجريبية المجانية من Magzter GOLD لمدة 7 أيام للوصول إلى آلاف القصص المتميزة المنسقة وأكثر من 9,000 مجلة وصحيفة.
بالفعل مشترك? تسجيل الدخول
Raymond Group continues Segregation of its Business Verticals
After successful demerger of \"Lifestyle Business,\" Raymond Limited announced yet another restructuring to unlock further value for stakeholders.
Ultratech Cements adds India Cement in its shopping cart
India's Cement Industry is poised for consolidation. In recent past we have seen multiple large & small acquisitions in cement segment for consolidating positions.
Valor Estate Limited: "Diversification" to "Sepration" of Hospitality Business
“From investments in hospitality business, the demerger transaction will enable VEL to start its construction in hospitality”
SIEMENS Energy to be a separate entity in alignment with global strategy
Siemens AG announced its Vision 2020+ which included the spin-off of its Gas & Power [G&P) i.e., Energy Business into Siemens Energy.
Arvind Group separates its Advanced Material Business for independent growth trajectory
Advanced Material Business (AMD) of Arvind Limited focuses on advanced materials and caters to customer needs across the textile value chain, including specialty yarns, fabrics, and ready-made products.
Merger for bail-out from debt obligation
Ind Swift Limited (herein after also referred to as 'ISL' or 'Transferor Company') is engaged in the business of manufacturing of Pharmaceutical Products.
Batliboi Ltd. merging its associate company
Batliboi Limited has a history of collaborations with various foreign technical partners and has subsidiaries like Hydraulic & General Engineers Ltd. and Batliboi International Ltd. In March 2024, the board of Directors of Batliboi Limited accorded their approval for the merger of promoter owned private company with itself.
TVS Motors issuances of convertible preference shares as bonus instead of dividend
Recently, well known auto manufacturer announced the issuance of preference shares as a bonus to all equity shareholders.
Aditya Birla Fashion & Retails Scheme to undo its consolidation
Corporate restructuring saga continues for Aditya Birla Group.
Advent International to combine its listed & private entity business
Recently, Advent International announced the merger of its privately held pharma company into recently acquired listed pharma company.
