Jindal Stainless on Thursday said it has acquired the remaining 74 per cent stake in Odisha-based Jindal United Steel Limited for Rs 958 crore. Jindal United Steel Limited (JUSL) has become a 100 per cent owned subsidiary of JSL, which held 26 per cent stake in it earlier, a company statement said.
“JSL has now acquired the remaining 74 per cent equity stake in JUSL for a cash consideration of Rs 958 crore. The transaction makes JUSL a 100 per cent owned subsidiary of JSL,” JSL said.
JUSL has been operating the hot strip mill (HSM) of 1.6 million tonne per annum (MTPA) capacity and a cold rolling mill of 0.2 MTPA capacity. It is also undergoing capacity expansion of up to 3.2 MTPA at Jajpur, Odisha.
JSL Managing Director Abhyuday Jindal said, “Given the strong outlook on stainless steel and the association of JUSL and JSL, the board of directors of JSL decided to consolidate all the critical facilities of stainless steel manufacturing under one umbrella.”
This acquisition would result in improved synergies between both companies and a preferred governance structure, thereby enhancing the value for all stakeholders, he said.
The board of directors and JSL shareholders had earlier approved the transaction.
Jindal Stainless is the country’s largest stainless steel making company with an annual melt capacity of 2.9 million tonnes (MT). It has two stainless steel manufacturing units located in Haryana and Odisha.