JSW Steel to acquire 3 companies for US$900 Million, sells CERs

JSW Steel Ltd has announced that the Board of Directors of the Company at its meeting held on August 21, 2007, inter alia, has taken following decisions:

A. Taking on Record JSW Steel (Netherlands) B.V. as the wholly owned subsidiary of the Company: JSW Steel (Netherlands) B V., a Company incorporated in Netherlands on August 17, 2007, to create a holding Company structure overseas was taken on record as the wholly owned subsidiary of the Company.

B. Acquisition of Plate Mill, Double Jointing & Coating and Pipe Mill Facilities in Texas, USA: The Board of Directors after taking into account the legal, financial, technical, business and market due diligence reports submitted by various internationally reputed agencies, have approved the acquisition of Plate Mill, Double Jointing & Coating and Pipe Mill Facilities in the USA for an aggregate Enterprise Value of USD 0.90 billion through wholly owned subsidiaries / step down subsidiaries in Netherlands and USA formed / to be formed to raise finances and make investments. JSW Steel will have a stake of 90% in the Target Company.

C. Agreement for purchase of Office Premises in Mumbai near Bandra Kurla Complex: Considering the Company's future requirement of office space in Mumbai, the Board has approved the acquisition of a new office premises at a cost of Rs 360 crores to be developed by Orbit Shelter Corporation Ltd., at Kalina near Bandra-Kurla Complex.

D. Sale of Certified Emission Reductions (CERs) to Noble Carbon Credits Ltd: The Company has sold accrued CERs of 1,337,555 at Euro 14.90 per CER and received a consideration of Rs 111.10 crores. The Board has taken note of the same.

E. Setting up of a Beneficiation Plant: The Board has approved to set up 6 modules of 500 tph Beneficiation plant (feed capacity of 20MTPA) producing 15 mtpa of beneficiated ore at an estimated cost of Rs 850 crores.

Source : Equity Bulls

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