JSW Group’s subsidiary JSW Steel Ltd. has entered into a legal procedure of share purchase agreement for acquiring 26.45 per cent stake in JSW Vallabh Tinplate Pvt Ltd. for Rs 35 crore from existing third party shareholders to add strategic value, the company said.
“JSW Steel Limited has entered into a legally binding share purchase agreement to acquire JSW Vallabh Tinplate Private Limited in one or more tranches, 1,32,37,227 equity shares of Rs 10 each,” JSW Steel said in a BSE filing on Tuesday.
With the closing of this deal, JSW Vallabh Tinplate will become a wholly-owned subsidiary of JSW Steel with increasing its direct and indirect shareholding from 73.55 per cent to 100 per cent in JSW Vallabh Tinplate. “The prospects for tinplate are encouraging and it will be of strategic importance for JSW Steel Ltd. to become an important player in this segment,” JSW Steel said in its statement.
The company also clarified that the acquisition of JSW Vallabh Tinplate does not fall within the relations of party transaction(s) and the promoter/ group’s the promoter/ group companies do not have any interest in the entity which is being acquired.