Japan’s Kobe Steel is acquiring 3.25 per cent stake in steel pipe manufacturer Man Industries (India) Ltd for Rs 30 crore in a strategic investment. The two firms will jointly explore opportunities in the global steel pipe market as a part of this transaction.
“Both MAN and KOBE will jointly explore prospective business opportunities in the global steel pipe market and conduct joint research & development of products. The companies will continue to explore areas to further strengthen the long-term strategic partnership,” Man Industries stated in a filing.
Kobe is picking up 1.81 million shares of the Mumbai-based firm at Rs 165 a unit. The shares are being issued at 38 per cent over Wednesday’s closing price and above the 52-week high of Rs 161.7.
Shares of Man Industries were trading at Rs 121.5 a unit, up 1.72 per cent at 12:29 pm on Thursday in a Mumbai market down over 1.41 per cent.
For the first nine months of FY12, Man Industries reported 17 per cent increase in revenues to Rs 1,427 crore with net profit rising 4.7 per cent to Rs 76.8 crore.
Man Industries’ promoter and chairman RC Mansukhani said that it’s a first-of-its-kind alliance where a Japan-based plate/coil manufacturer had joined hands with a pipe manufacturer from India.
Keynote Corporate Services was the financial advisor to Man Industries on the transaction.