Lloyed Steel is close to selling around 32% stake to the Miglani family for Rs 600 crores. The deal will be done by the closely held companies under the Uttam Galva Group. The deal amount will come into the company over a period of 18 months, an upfront payment of Rs 150 crores is expected to be given to Lloyds Steel at the time of signing the deal.
Sources with direct knowledge said, the deal will be done by issuing fresh equity, warrants to the Miglani family which will be converted over the next one and a half years. Present promoters of Lloyds Steel will continue to hold over 30% stake in the company. Sources also said that the deal could be signed within thirty days. Uttam Galva Group is expected to get some board positions in the next six months.
Lloyds Steel is in the process of de-merger of the engineering division and is also in talks with lenders to exit BIFR . Lloyds Steel promoters will continue to hold over 30% stake in the company after the stake sale. The stake sale is expected to give boost to the cash situation of the company and help in it's expansion projects. Both, Lloyds Steel and Uttam Galva Group have denied the development.
Sources with direct knowledge said, the deal will be done by issuing fresh equity, warrants to the Miglani family which will be converted over the next one and a half years. Present promoters of Lloyds Steel will continue to hold over 30% stake in the company. Sources also said that the deal could be signed within thirty days. Uttam Galva Group is expected to get some board positions in the next six months.
Lloyds Steel is in the process of de-merger of the engineering division and is also in talks with lenders to exit BIFR . Lloyds Steel promoters will continue to hold over 30% stake in the company after the stake sale. The stake sale is expected to give boost to the cash situation of the company and help in it's expansion projects. Both, Lloyds Steel and Uttam Galva Group have denied the development.
Source: www.economictimes.indiatimes.com
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