For Rs 958 crore, Jindal Stainless buys the remaining 74% of JUSL

Jindal Stainless (JSL) said that it has paid Rs 958 crore to acquire the final 7.4% of Jindal United Steel Limited, which is situated in Odisha. According to a business statement, JSL, which formerly owned a 26% share in Jindal United Steel Limited (JUSL), now owns all of the company.

"JSL has now acquired the remaining 74 percent equity stake in JUSL for a cash consideration of Rs 958 crore. The transaction makes JUSL a 100 percent owned subsidiary of JSL," JSL said.

JUSL has been running a cold rolling mill with a capacity of 0.2 MTPA and a hot strip mill with a capacity of 1.6 MTPA.I t is also undergoing capacity expansion of up to 3.2 MTPA at Jajpur, Odisha.

According to Abhyuday Jindal, Managing Director of JSL, "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."

According to MD, this merger will increase the synergies between the two businesses and create a preferable governance structure, increasing the value for all stakeholders.

The acquisition has already received approval from the JSL board of directors and shareholders.

Source: Media Reports