Not in talks with Lloyds Steel for stake buy: Uttam Galva

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Not in talks with Lloyds Steel for stake buy: Uttam Galva

Ankit Miglani, deputy managing director of Uttam Galva today clarified that though Lloyds Steel has a strategic fit with Uttam Galva but the company is not in talks with Lloyds Steel for stake buy.

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Ankit Miglani, deputy managing director of Uttam Galva today clarified that though Lloyds Steel has a strategic fit with Uttam Galva but the company is not in talks with Lloyds Steel for stake buy.

"Reports of Lloyds Steel being taken over by Uttam Galva are completely baseless. Uttam Galva Metallics shares a business relationship with Lloyds Steel but also is not in talks for any stake buy," he told CNBC-TV18 in an exclusive interview.

Also Read: Tulsian's view on Lloyd Steel

Below is the verbatim transcript of his interview with Udayan Mukherjee of CNBC-TV18. Also watch the accompanying video.

Q: There has been lot of talk in the market that Uttam Galva is interested and is in talks with Lloyd Steel to buy a stake there, can you confirm that?

A: That is absolutely incorrect; Uttam Galva Steel has absolutely no relation with any discussions underway with Lloyd Steel. This is untrue and it's a false rumour being spread by someone. I would like to emphatically state that Uttam Galva Steel is not involved in any transaction or talks with Lloyd Steel.

Q: It makes no strategic sense for Uttam Galva to look at an asset like Lloyd Steel, is that why you are not interested because this rumour has been in the market for quite few days now?

A: I have been hearing this rumour for a long time. I am not saying it won't make strategic sense, they do produce the raw materials we consume. They are also present in the same finished products that I am in the same markets. But we are not in any discussion of any sort of that sort at this point.

Uttam Galva Steel Limited is not talking to Lloyd Steel for any sort of strategic alliance or anything of that sort. This rumour which as been going on for quite few months now is actually incorrect.

Q: Uttam Galva Metallics has been involved with the steel division of Lloyd Steel ofcourse, does it make sense to look at a particular vertical i.e the steel business of Lloyd Steel even if you are not looking at buying the company or buying part of the company?

A: Uttam Galva Metallics which is an unlisted promoter company is deeply involved in operations with Lloyds. We are logistically right next to each other. My finished product is a raw material for Lloyds and gets transferred on a regular basis and gets converted to finished product there. Strategically, it's a good fit together but again, Uttam Galva Metallics is also not in discussion with Lloyds for any sort of equity strategic tie up.

Q: So what kind of strategic tie ups are you in talks with?

A: We are continuously co-operating as a supplier to Lloyds. We are supplying hot metal from our blast furnace to Lloyds in the electric arc furnace where it is converted to slab and hot rolled coil and cold rolled and galvanised. So we are in business together. But Uttam Galva Metallics is not under discussion for any equity tie-up with Lloyds Steel.