ArcelorMittal hikes stake in Uttam Galva

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Global steel giant ArcelorMittal has acquired 29 per cent stake in Uttam Galva for Rs 422 crore through open offer, taking its holding in the domestic firm to 34.42 per cent.

ArcelorMittal, in October 2009, bought 5.6 per cent stake in Uttam Galva and two months later launched the open offer to buy additional 29 per cent stake in the Indian firm at Rs 120 a share.

Billionaire L N Mittal-led steel maker has acquired 3.52 crore shares from the open market at a price of Rs 120 a piece, aggregating to Rs 422 crore, Uttam Galva said in a public announcement today.

Pursuant to the closing of the offer, ArcelorMittals' shareholding in Uttam Galva has gone up to 34.42 per cent.

The open offer by SBI Capital Markets, on behalf of ArcelorMittal Netherlands BV, began on December 19, 2009, closed on January 7, 2010.

Shares of Uttam Galva were trading higher by 3.7 per cent at Rs 107.45 in the afternoon trade on BSE.

Last week Uttam Galva reported over three-fold jump in net profit at Rs 17.25 crore for the quarter ended December 2009. Total operating income of steel producer fell to Rs 1,091.68 crore during the three-month period ending December from Rs 1,102.50 crore of the same quarter last fiscal.