JSW Steel to Enter into a Partnership With Japan’s JFE

MUMBAI (GaeaTimes.com) — Japan’s major Steel manufacturer JFE has shown interest to buy shareholdings of the Indian private steel maker JSW.

“The agreement provides JFE to maintain its shareholding not more than 14.99 per cent in JSW,” said JSW authority in a filing to the Bombay Stock Exchange. Both the party has entered into a long term partnership under which JSW will issue 32,004,798 equity shares to JFE at Rs. 1,500 each on August 31. JSW Steel Vice Chairman and Managing Director Sajjan Jindal said,

“The definitive agreement is a transformational step forward in its mission to move up the value chain in steel production and enhance its ability to weather the cyclicality inherent in the global steel industry,”

JSW steel’s debt stood at about 16,000 crore at the end of the last fiscal and its debt equity ratio was 1:69:1. Shares of JSW Steel were trading 0.87 per cent lower at Rs 1,160 on BSE in morning trade.