The Hindu Business Line : Mounteverest in race for Orissa Sponge

Kolkata, Feb. 24 Promoters of loss-making Orissa Sponge Iron & Steel have brought in a white knight to counter a 20 per cent open offer by Bhushan Power & Steel.

Mounteverest Trading & Investment, a listed outfit of the Jajodias, on Tuesday informed BSE that it has executed share purchase and shareholders agreement with TRFI Investment Pvt Ltd and Torsteel Research Foundation of India, both promoter group outfits of Orissa Sponge, for acquisition of 54,20,000 equity shares of Orissa Sponge Iron & Steel Ltd.

This represents 27 per cent stake in Orissa Sponge.

The communication said: “Consequently, the company (Mounteverest) is required to give competitive bid under the provisions of SEBI (Substantial Acquisition of Shares & Takeovers) Regulations, 1997, to the shareholders of the company (Orissa Sponge). The detailed terms and conditions will be incorporated in the offer documents.”

Orissa Sponge closed up five per cent at Rs 268.70 on the BSE.

The stock reported a traded volume of 20.62 lakh shares on the BSE.

Some 19.9 lakh shares changed hands at Rs 268.70 each in a block deal between Mounteverest and Torsteel at 10:11 a.m. on the BSE.

According to the bid by Bhushan Power, investors holding shares of Orissa Sponge on February 27 will be eligible for an open offer, lead manager Centrum Capital Ltd said in the offer document.

Bhushan Power aims to buy 52 lakh shares, or 26 per cent of Orissa Sponge, at Rs 300 rupees apiece starting April 3. The offer will end on April 23. Incidentally, Jajodias controls Monnet Ispat, which is also into secondary steel making.

Mounteverest on Tuesday hit 5 per cent upper circuit at Rs 60.95.

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