Welspun Corp’s share price rose 4 percent on 19 November after the Competition Commission of India approved the sale of plates and coil mill division. The stock rose more than 53 percent in the last nine months.
The Competition Commission said on 18 November that it had approved the acquisition of plates and coil mill division of Welspun Corp by Laptev Finance Limited.
In March, Welspun Corp said it would sell its assets worth Rs 940 crore to two companies – Laptev Finance and Welspun Captive Power Generation.
The firm further stated that it has signed an agreement with Laptev Finance to sell its plate and coil mill division for Rs 848.5 crore.
“The company’s board of directors, in its meeting held on March 30, 2019 … approved the recession to Laptev Finance Private Limited, a commercial undertaking of the company’s plates and coil mill division (PCMD),” Welspun Corp in a regulatory filing said.
Approving the deal, the Competition Commission (CCI) tweeted on Monday that it “approves the acquisition of ‘Plates and Coils Mill Division’ from Welspun Corp Ltd by Laptev Finance Private Limited.”
In a collation notice, CCI stated “Welspun Corp Ltd and Laptev entered into a business transfer agreement on 31 March 2019, in which Welspun has agreed to sell, assign, transfer, deliver and deal and Laptev Has agreed to purchase and acquire the target business. From Welspun as a concern based on a recessionary sale “.
It added that the proposed combination would allow Laptev to buy, sell, remodel, export, import, and trade all types of steel products.
Laptev deals in the purchase, sale, resurfacing, export, import and trading of steel goods, among others, while Welspun Corp is the flagship company of the Welspun Group, one of the world’s largest welded line pipe manufacturing companies.