Tata Steel out of bidding for Vietnam steel firm
02 Jul 2007
Kolkata: Tata Steel has lost the bidding battle for Vietnam''s Vinausteel and SSE Steel after losing a vote on the resolution for its sale and purchase agreement by Vietnam Industrial Investments (VII), the parent company of the two steel makers.
VII
informed the Australian Securities Exchange — the
company is listed on the Australian stock exchange - that
the resolution on the sale and purchase agreement was
lost on a poll vote by shareholders at its annual meeting
on 29 June.
Tata Steel''s Singapore subsidiary NatSteel was to acquire 100 per cent in SSE Steel and 70 per cent in Vinausteel. The transactions were to be completed by June.
The deal ran into problems when Prudential Vietnam Securities Investment Fund Management Company and VII managing director Henry Lam Van Hung, who holds 10.46 per cent, made an unsolicited cash takeover offer.
Prudential''s
offer of $13.3 million was 10.65 per cent higher than
NatSteel''s. With the vote rejecting NatSteel''s offer,
VII''s independent directors will propose an amended offer
for $17.6 million from Prudential.