In September 2009, Moneylife had reported that Mittal and Miglani had bigger plans on the anvil, which is now being seconded by some media reports
According to media reports, ArcelorMittal Netherlands BV, controlled by Lakshmi Mittal, is likely to build a one million tonne (MT) steel plant at Satarda in Maharashtra through a joint venture (JV) with Uttam Galva Steels Ltd (UGSL).
ArcelorMittal Netherlands BV, a subsidiary of ArcelorMittal, has made an open offer to raise its stake in USGL to 35% at Rs120 per share, which closed on Thursday.
Moneylife had earlier reported on 5 September 2009 that LN Mittal was likely to make an open offer to acquire another 29.4% in UGSL, making ArcelorMittal an equal partner with the Indian promoter Rajinder Miglani. Under the agreement, Mr Mittal will purchase a 5% stake (at Rs120 a share) in Uttam Galva followed by an open offer to acquire another 29.4%, making ArcelorMittal an equal partner with the Indian promoter Rajinder Miglani. Uttam Galva has a steel production capacity of 750,000 tonnes per annum.
USGL had informed bourses on 4th September about its co-promotion agreement with ArcelorMittal Netherlands BV.
Sources close to the deal had earlier told Moneylife that ArcelorMittal will partner with the Miglanis to set up a 2MT Hot Rolled Coil (HRC) project at Redi near Goa. The Miglanis already own 750 acres of land there, which once belonged to Usha Ispat, controlled by Vinay Rai. Usha Ispat had a pig iron plant at Redi, which was auctioned under the provisions of the Sarfaesi Act, 2002. The land is also located near a jetty and is close to the raw material source.
Source: http://www.moneylife.in/article/8/3118.html
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