Usha Martin Limited signs agreement to sell steel business to Tata Steel Ltd
Usha Martin Limited ("UML") has today executed definitive agreements for sale of its steel business to Tata Steel Limited or its subsidiaries ("TSL") through a slump sale on a going concern basis for a consideration being in the range of Rs.4300 crores - Rs. 4700 crores. The closing of this sale is subject to fulfilment of various conditions under the agreements, which are primarily regulatory, shareholders and the consent of our lenders. UML and TSL shall jointly work towards fulfilment of various conditions precedent agreed in the definitive agreements and will work expeditiously to complete the closing. All the employees pertaining to steel business will be transferred as part of the divestment and the sale proceeds will be applied first to repay existing lenders of UML. Post divestment of steel division and repayment of exiting lenders, UML will be able to operate a significantly deleveraged wire rope business, in which it is one of the leading global player.
The committee of Independent Directors of UML, that was authorised to oversee the sale process of the steel division, unanimously recommended to the Board the sale of steel business of UML to TSL. Upon deliberation, the Board of UML was pleased to approve the transaction, subject to fulfilment of various conditions precedent agreed in the definitive agreements. The divestment is part of UML's commitment towards all its stakeholders.
SBI Capital Markets and Arpwood Capital acted as the financial advisors to Usha Martin Limited and Khaitan & Co. acted as the exclusive legal advisor.
Shares of USHA MARTIN LTD. was last trading in BSE at Rs.31.4 as compared to the previous close of Rs. 32.45. The total number of shares traded during the day was 876469 in over 2573 trades.
The stock hit an intraday high of Rs. 34.35 and intraday low of 28.1. The net turnover during the day was Rs. 27807145.
Shares of TATA STEEL LTD. was last trading in BSE at Rs.624.55 as compared to the previous close of Rs. 620.45. The total number of shares traded during the day was 1518085 in over 26116 trades.
The stock hit an intraday high of Rs. 646.7 and intraday low of 585. The net turnover during the day was Rs. 946790840.