Sanjay Singal-promoted Bhushan Power and Steel may not revise its open offer for Orissa Sponge Iron and Steel (OSIL) shares.
Sanjay Singal-promoted Bhushan Power and Steel may not revise its open offer for Orissa Sponge Iron and Steel (OSIL) shares. The company had announced an open offer to buy 26% stake in OSIL for Rs 300 a share on February 9.
Requesting anonymity, a Bhushan Power official said, “We can’t say at this point what we will do. We are analysing the offers made by others.” Asked if the company will make a revised bid, he said, “It’s difficult to say.”
The official said Bhushan Power has a month to decide if it wants to revise the bid price. He said, “Whether we make another offer or not depends on the future and the market situation.”
Calls and text messages to Sanjay Singal, the MD of the company, went unanswered. On February 27, Singal had said the company will make a counter offer.
Bhushan Power made its open offer on February 9, when Orissa Sponge shares were trading at Rs 157 apiece. On Thursday, Orissa Sponge shares closed at Rs 377.90 at the Bombay Stock Exchange, up 5%. The stock has more than doubled since then due to offers made by Bhushan Steel and Monnet Ispat to buy 20% stake each in the company.
Bhushan Steel, currently the frontrunner in the race for Orissa Sponge, announced an open offer to buy 20% stake from the market at Rs 330 per share. The company, which earlier bought 9.5% stake from Delhi-based real estate developer Unitech, made the offer through its subsidiary Bhushan Energy. Since then, it has been tightening its grip on Orissa Sponge by buying shares from the open market. Currently, Bhushan Steel holds more than 19% in Orissa Sponge. It has another 35 lakh warrants of the company, which, upon conversion, will take its holding to over 26%.
Monnet Ispat, on the other hand, made a Rs 310 per share open offer on February 25 to counter Bhushan Power’s offer of Rs 300 per share for a 20% stake. On February 24, Monnet Ispat bought 54.2 lakh shares from two Orissa Sponge promoters — Torsteel Research Foundation (TRF) and TRFI Investments — for Rs 283 a share. The 27.1% stake was bought for Rs 153 crore.
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