Usha Martin hit a new 52-week high today at Rs.36.40, with volumes surging almost 2.5 times. The stock’s UC is at 20% at Rs.37.65.
The stock price has surged as the suspense over who will take over the company seems to have finally ended.
Over the weekend, the company announced that it has signed a definitive agreement with Tata Steel for the acquisition of the company’s steel business through a slump sale on a going concern basis. This is being done for consideration being in the rage of Rs.4300 crore – Rs 4700 crore.
The closing of the acquisition is subject to the fulfilment of various conditions under the agreements. The parties shall jointly work towards fulfilment of conditions precedent which are largely regulatory approvals required for the transfer of the business undertaking. All the employees pertaining to the steel business will transfer as part of the acquisition.