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
Denne historien er fra August 2022-utgaven av M & A Critique.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra August 2022-utgaven av M & A Critique.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
Themis Group to consolidate its operations
Themis Medicare Limited (\"TML\" or \"Transferee Company\") is engaged in the business of manufacturing of finished formulations and synthetic Active Pharmaceutical Ingredients (\"APIS\"). The equity shares of TML are listed on the Stock Exchanges.
Siyaram Silk Mills "Special Reward" to Shareholders – Shall Issue Preference Shares as Bonus Shares
Recently Siyaram Silk Mills Limited announced issuance of compulsorily redeemable preference shares as a bonus” to all the equity shareholders.
Cello Group's decides to simplify its corporate structure
Cello World Limited (\"CWL\" or \"Transferee Company\") is a company incorporated under the provisions of the Act.
Whether Long Term Capital Loss allowed in case of Share Capital Reduction?
Recently, Hon'ble the Supreme Court reiterated that reduction in share capital is covered under Section 2(47) of the Income Tax Act, 1961 and assessee is eligible to claim losses.
STRATEGIC MERGER SHALL CATAPAULT ASTER DM AS THE 3rd LARGEST HOSPITAL CHAIN IN INDIA
\"The resulting merged listed entity will be called Aster DM Quality Care Limited\"
STAMP DUTY EXEMPTION ON TRANSFER OF SHARES AS PART OF MERGER OF SUBSIDIARIES
A Writ Petition was filed by Ambuja Cements Limited (hereinafter \"the Petitioner\" or \"ACL\"), challenging the imposition of stamp duty on a merger order under Article 23 of Schedule IA of the Indian Stamp Act, 1899 by Collector of Stamps, Delhi (hereinafter \"Respondent\").
Acquisition of Plastic Injected Moulding Business from Sundaram Auto helps Pricol Group to a leadership position in Auto Component Sector
Recently, Sundaram Auto Components Limited, a wholly owned subsidiary of TVS Motor Company Limited approved the sale of its injection moulded plastic component solutions division to Pricol Precision Products Private Limited, a wholly owned subsidiary of Pricol Limited, as a going concern on a slump sale basis.
Simplifying the Corporate Structure - Merger of Inox Leasing and Financing with Gujarat Fluorochemicals
The board of Directors of some of Inox group entities have approved a Composite Scheme of Arrangement which provides for first demerger of Wind business of Inox Leasing and Finance Limited being a promoter group entity into Inox Holdings and Investments Limited and subsequently, merger of remaining Inox Leasing and Finance Limited into Gujarat Fluorochemicals Limited to provide direct holding of listed company to the promoters.
Cement Sector Consolidation Continues: Orient Cement to be acquired by Adani Group's Ambuja Cement
The shopping spree for the Adani group seems to be unstoppable. Recently, Adani group announced yet another acquisition in the cement space. This time it is Orient Cement Limited.
ITAT held that the reserve created on amalgamation is capital in nature and not taxable as perquisite
Recently, the Income Tax Appellate Tribunal, Mumbai held that the reserve created on amalgamation is capital in nature and not taxable as perquisite.
