JSW Steel Limited enters into assignment agreement with Laptev

JSW Steel Limited ("JSW") has entered into an assignment agreement dated 31 March 2021 ("Assignment Agreement"), whereby Laptev Finance Private Limited ("Laptev"), a JSW Group company has assigned to JSW all rights and obligations of Laptev under the Business Transfer Agreement dated March 31, 2019 as amended from time to time including the amendment dated 31 March 2021 ("Business Transfer Agreement") executed by Laptev with Welspun Corp Limited ("Welspun"), for a consideration of INR 1,00,00,000 (Rupees One Crore only) and applicable taxes. As per the Business Transfer Agreement, Laptev had agreed to acquire from Welspun, as a going concern on slump sale basis, the business of manufacturing of high-grade steel plates and coils ("PCMD Business"), for a consideration of INR 848,50,00,000/- (Rupees Eight Hundred and Forty Eight Crores and Fifty Lakhs only), which is subject to closing adjustments towards net working capital. As a part of the transaction, JSW shall also purchase a parcel of land pertaining to PCMD Business from Welspun Steel Limited for INR 1,50,00,000 (Rupees One Crore Fifty Lakhs only). The consideration amounts will be paid on a deferred basis, subject to Welspun fulfilling certain regulatory approvals and payment milestones as provided under the Business Transfer Agreement.

Subsequent to the assignment of the Business Transfer Agreement to JSW, the closing has occurred on 31 March 2021 and consequently Welspun has transferred the PCMD Business to JSW as on 31 March 2021.

The PCMD Business will be of strategic importance for JSW to expand its value added and special products portfolio, particularly plate mill plates in which JSW has so far not been present.

Shares of JSW STEEL LTD. was last trading in BSE at Rs.467.85 as compared to the previous close of Rs. 467.55. The total number of shares traded during the day was 395138 in over 5307 trades.

The stock hit an intraday high of Rs. 473.65 and intraday low of 461.65. The net turnover during the day was Rs. 185649239.

Source : Equity Bulls

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