JSW Steel to acquire US firms for \.9 bln

New Delhi, Aug 21 (UNI) JSW Steel Ltd today said it is mulling to buy three separate US-based companies for a value of 0.9 billion dollars.

The company will acquire 90 per cent stake at approved enterprise valuation and the balance 10 per cent will be retained by some of the existing shareholders, a statement said.

The companies targeted are Jindal United Steel Corporation, Saw Pipes, US and Jindal Enterprises LLC.

With the acquisition, JSW would get an entry point into growing and booming oil and gas sector in North America.

''The company is confident of improving the operations substantially through various initiatives like quick capacity ramp-up, supply of better quality and right size slabs matching with the requirement of the target companies committing capex commitments for upgrades and improving the facilities to reduce the downtime and to achieve cost reductions with improved capacity utilisation.'' The funding will be done by foreign currency debt of 380 million dollars to be raised against the guarantee of JSW Steel and the balance 560 million dollars to be raised in the target company.

Besides, the company has entered into an agreement with Orbit Corporation to buy office premises at Lower Parel jointly with Group companies in which JSW Steel share including all cost is Rs 336 crore.

It is also planning to acquire larger office premises jointly with Group companies at Kalina near Bandra-Kurla complex to be developed by Orbit Shelter Corporation Ltd, in lieu of the office premises at Lower Parel.

UNI