M&A

M&A

Jindal Pipes makes counter offer to Kirloskar's for Indian Seamless Metal Tubes

BusinessLine  

Jindal Pipes has made a counter-offer to shareholders of Indian Seamless Metal Tubes against Kirloskar Ferrous Industries' INR 477 crore offer. Jindal Pipes has placed an expression of interest for acquiring a majority stake in ISMT, which will not only be better than KIFL but also be in the best interest of shareholders and lenders. In November, Kirloskar Ferrous Industries said it would acquire 51.25 % equity stake in ISMT by investing INR 477 crore in the preferential shares and then provide an unsecured loan of INR 194 crore. The deal triggered the mandatory 25% open offer for shares from the public. Avenue Capital-backed Asset Reconstruction Company of India and Edelweiss ARC acquired ISMT loan from banks. Lenders invited bids for their INR 3,359 crore outstanding loans soon after receiving an INR 670 crore non-binding offer from Kirloskar Ferrous.