Sandur Manganese’s board on April 26 approved the purchase of 80 percent stake in Arjas Steel (ASPL) by entering into a share purchase agreement as part of a strategic business acquisition, the company announced in an exchange filing.
The financial details of the deal were not disclosed by the company. However, the enterprise value of ASPL is Rs 3,000 crore, the company said, adding that “to acquire an 80% equity stake in ASPL, equity value will be decided basis customary and agreed adjustments to the enterprise value at the closing date”.
Additionally, the remaining 19.12 percent shares in the steel company will be acquired by BAG Holdings Private Limited, which is an entity owned by Bahirji A Ghorpade, one of the promoters of Sandur Manganese & Iron Ores Limited, the filing said.
According to the statement, ASPL is an integrated specialty steel manufacturer located in Tadipatri in Andhra Pradesh and has upstream and downstream facilities. The company primarily catering to the automotive sector, the statement added. The firm’s consolidated turnover for FY23 was Rs 2,876 crore.
The company further said that the acquisition of ASPL “aligns with strategic vision and future road map of The Sandur Manganese & Iron Ores Limited (SMIORE) to become a national integrated player in the steel industry”.
The deal is likely to be closed in seven months, subject to all the regulatory conditions of the share purchase agreement, it said.
The share price of Sandur Manganese was trading flat at Rs 546.95, up by 0.46 percent on BSE during early trading on April 26.
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