Slump effect: US company won't buy Gujarat firm
Mumbai, February 24, 2009. The US-based Geneva Acquisition
Corporation (GAC) has terminated its plan to acquire Global
High-Tech Industries (GHIL), the Gujarat-based sponge iron and
billets producer, following adverse market conditions. GAC,
engaged in inorganic investments, recently announced it would
not seek its shareholders' approval for the merger of Global.
In November 2008, GAC had entered into a definitive agreement
to purchase GHIL. Under the terms of the agreement, GAC would
purchase the sponge iron producer to form India Steel & Metals
Corporation in a multi-step transaction, initially acquiring
51.6 per cent of GHIL with an option to acquire an additional
15.7 per cent. The agreement also allows GAC a complete
takeover in the later stage by acquiring the remaining 32.7
per cent.
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Source :
Business Standard website
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