Mukand has received an approval to transfer its Special & Alloy Steel Business, having an installed capacity of 370,000 MT per annum, as a going concern by way of a slump sale to a subsidiary company (to be formed) for an enterprise value of approximately Rs 1,590 crore, subject to deduction of debt and net working capital adjustment as on the date of transfer.
The above restructuring proposal is intended to facilitate the possible introduction of a strategic partner. The board of directors at their meeting held on December 22, 2014 has approved for the same.
The net consideration will be paid in cash by the subsidiary as per the terms of the Business Transfer Agreement to be executed in this regard. The aforesaid transaction is subject to requisite approvals. The company proposes to seek an approval of its shareholders by postal ballot for the above transaction.
Mukand, earlier known as Mukand Iron & Steel Works, is engaged in manufacturing of alloy and stainless steel long products. The company operates in four segments namely steel, industrial machinery, road construction and other products.
| Company Name | CMP |
|---|---|
| Tata Steel | 210.95 |
| JSW Steel | 1257.25 |
| SAIL | 176.45 |
| Jindal Stainless | 775.60 |
| APL Apollo Tubes | 2022.35 |
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