Mukund Divests in Mukand Sumi Special Steel to Jamnalal Sons
After receiving the Competition Commission of India approval, the Jamnalal Sons have completed the first tranche of agreement with Mukund on December
After receiving the Competition Commission of India approval, the Jamnalal Sons have completed the first tranche of agreement with Mukund on December 31, 2020 by acquiring nearly 1,24,75,723 equity shares of Mukand Sumi Special Steel Limited, constituting 30% of the issued and paid up equity share capital. The first tranche is completed for consideration of over INR 713.61 crores. Mukund said “After completion of the aforesaid transaction, the Company will continue to, inter alia, retain ownership of its alloy steel manufacturing assets in Ginigera in Karnataka & income derived from the sale of its alloy steel products, manufactured in Ginigera in Karnataka, to its joint venture, Mukand Sumi Special Steel Limited.".
In August 2020, Mukund's board of directors had proposed to selloff or dispose off 2,12,08,729 equity shares, constituting up to 51% of the equity share capital of Mukand Sumi Special Steel Limited in one or more tranches over 12 month period to any one or more of the Promoter Group Entity(ies) of the Mukund. Later on November 05, 2020, Mukund entered into a share purchase agreement with Mukand Sumi Special Steel Limited and Jamnalal Sons which is an entity belonging to the promoter group of the Company the buyer identified, for the proposed transaction. On December 30, 2020, the transaction received a green signal from the Competition Commission of India.
Mukand Sumi Special Steel Ltd is a joint venture of Mukand Ltd India and Sumitomo Corporation of Japan, with a Special Bar Quality rolling mill for the production of straight round and hexagon bars, wire rod and bar-in-coils near Hospet in Karnataka