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Essar to raise takeover bid for Esmark

NEW YORK: The Essar group on Wednesday said it would raise its cash offer to $19 a share for acquisition of U.S. steel firm Esmark, which also faces a rival offer by Russia’s steel major Severstal.

Essar had earlier offered $17 a share for Esmark.

The proposed enhancement of the cash offer will represent an increase of nearly 12 per cent.

The previous offer valued the deal at about $1.1 billion, including the debt part, which has now increased by close to 100 million dollars.

Mumbai Special Correspondent writes:

Essar Steel Holdings Limited (Essar) has informed the Esmark board of directors on Tuesday that Essar is providing notice of its intention to increase its offer.

Upon execution of the merger agreement, Essar will increase its offer to $19 per share to purchase the outstanding shares of Esmark.

On April 30, Essar entered into a memorandum of agreement with Esmark to acquire all the outstanding shares of Esmark for a cash purchase price of $17 per share.

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