Ultimate Logistics, MEEL and Ushdev jointly offer to acquire 26 per cent in Lloyd Steel

16 Jul 2012

Three companies, including Ultimate Logistics Solutions Pvt Ltd, Metallurgical Engineering Equipment Ltd (MEEL) and Ushdev International, have jointly made an open offer to acquire 26 per cent stake in Llloyd Steel for over Rs316 crore.

The three have proposed to jointly acquire 271.5 million shares of Lloyds Steel at a price of Rs11.65 per share.

The offer, if fully accepted, will give the acquirers 26 per cent of the 'emerging voting capital' of Lloyds Steel for an investment of Rs316.38 crore.

The open offer follows Lloyds Steel shareholders' approval of a resolution to issue 380 million shares on preferential basis to Ultimate Logistics and MEEL.

The resolution, passed a at an extraordinary general meeting on Saturday, proposes to issue the shares ''at a price of Rs10 per share higher than the price calculated in accordance with SEBI guidelines.''

Lloyds Steel had, in March, allotted 81.5 million shares each to Ultimate Logistics and MEEL (Siddharth Holdings) at Rs11.65 a share.