JVSL board okays acquisition of three companies

Jindal Vijayanagar Steel (JVSL) has announced that its board of directors has approved the acquisition of Euro Coke and Energy Pvt Ltd, Euro Ikon Iron & Steel Pvt Ltd and JSW Power Ltd (JPL) by way of merger with the company.

JVSL, the country's third largest integrated steel plant, has also expanded its board by inducting three additional directors.

The new directors are, Antony Paul Pedder, former chief executive of British Steel Plc, Vijay Kelkar, ex-Union finance secretary and Sudipto Sarkar, a practicing senior advocate.

According to the scheme of arrangement, shareholders of Euro Ikon will be allotted one equity share of JVSL of Rs 10 each for every 16 shares of Rs 10 they hold.

Shareholders of Euro Coke will get one equity share of JVSL of Rs 10 each for 19 equity shares of Rs 10 each held by them, and shareholders of JPL will be allotted one JVSL equity share for 25 equity shares they hold.

The appointed date for the merger is April 1, 2005. The scheme is subject to necessary approvals. The acquisition of the three companies was based on the recommendations JVSL's consultants, RSM & Co and ICICI Securities.

Deloitte Haskins & Sells and ICICI Securities were valuers to submit their recommendations on the feasibility of acquiring these companies through merger and to suggest swap ratios.

The company is in the process of expanding its capacity to 3.8 MTPA from 2.5 MTPA by March 2006 and the merger is in line with the strategy, the company said in a press statement.

JVSL had entered into certain strategic tie-ups with these companies to operate these facilities.