Jindal Saw strengthens as its arm plans to acquire assts of PSL-North America

   

     Jindal Saw through it step-down subsidiary, Jindal Tubular USA LLC has entered into an asset purchase agreement on June 16, 2014 with PSL-North America LLC for the acquisition of identified assets and liabilities of PSL-North America LLC. The acquisition is expected to be completed on or prior to August 16, 2014.
     The acquisition was subject to the outcome of voluntary petition for relief filed by PSL-North America LLC under Chapter 11 of Title 11 of the United State Code in the US Bankruptcy Court for District kof Delaware including counter bids by various other bidders and possible objection by lender and creditors of PSL-North America LLC.
     The United States Bankruptcy Court for the district of Delaware has passed an order on August 15, authorising and approving the sale of substantially all of PSL North America's assets to Jindal Tubular in accordance with the terms of asset purchase agreement, free and fair of all liens, claims, encumbrances and other interests.
     Jindal Saw is in a commanding position in India's tubular market, being the undisputed leader with a turnover in excess of Rs 7,000 crore. The business operations are highly structured with three strategic business units, large diameter pipes, seamless tubes, and DI (ductile iron) pipes. Every SBU has its own dedicated sales and marketing targets and operations.
     The promoters holding in the company stood at 46.27% while Institutions and Non-Institutions held 30.72% and 12.01% respectively.
     The BSE group 'B' stock of face value Rs 2 has touched a 52 week high of Rs 95.90 on 11-Jun-2014 and a 52 week low of Rs 42.40 on 21-Aug-2013.
     Current price of stock is Rs 80.85, down by 0.70 points from its previous closing of Rs 81.55 on the BSE.