Visa Steel today said that Chinese steel maker Baosteel Resources will acquire 5 per cent in the Kolkata-based company.
In a BSE filing, the company said it has merged its joint venture firm with Baosteel Resources -- Visa Bao Ltd -- with Visa Steel.
"Consequent to the amalgamation, Baosteel will hold 5 per cent stake in Visa Steel. The amalgamation was approved by the Board of Visa Steel and Visa Bao at its meeting in Kolkata on August 21, 2015 and is subject to all necessary approvals from regulatory authorities," the filing added.
Formed in 2008 for setting up a ferro chrome plant in Odisha, Visa Bao is a joint venture with Visa Steel holding 65 per cent stake and the remaining 35 per cent with Baosteel Resources.
The lenders of Visa Steel and Visa Bao have already approved the merger, it said.
Visa Steel is transferring its special steel business of 0.5 million TPA plant including blast furnace, sponge iron, steel melt shop, refining facilities and bar & wire rod mill to its subsidiary -- Visa Special Steel -- in a bid to attract strategic investors.
VISA Steel is the flagship firm of the VISA Group, which has business interests in steel, power, cement, international trading and urban infrastructure.
Visa Steel shares today rose by 0.66 per cent to settle at Rs 15.25 apiece on BSE.
