Bhushan Power & Steel today made an open offer to buy an additional 26 per cent stake in Orissa Sponge Iron & Steel for Rs 300 a share, as part of its decision to acquire a majority stake in the company.
The open offer is for the acquisition of 52 lakh shares of Rs 10 each of Orissa Sponge from its existing shareholders, Orissa Sponge said in a newspaper announcement.
The shares would be bought at a price of Rs 300 a piece. The open offer would begin on April 3 and close on April 23, the company said.
The open offer comes in the wake of Bhushan Steel raising its stake in Orissa Sponge to about 15 per cent last week by acquiring shares from the open market.
Under Indian takeover regulations, the acquirer is required to make an open offer for an additional 20 per cent stake in the target firm, after its stake in the latter touches 15 per cent.
The offer price of Rs 300 a piece is at a premium of 91 per cent over Friday's closing price of Rs 157.25 on the BSE.
The open offer is made by Bhushan Power & Steel along with Titanic Steel Industries and Olympian Steel Industries as persons acting in concert, it said.