Mumbai, Dec. 22: JSW Steel will acquire shares from the minority shareholders of Ispat Industries at a price of Rs 20.53 per share. The open offer price is marginally higher than what it is paying Ispat for picking up a controlling stake through a preferential issue.

In a public announcement today, JSW Steel said the open offer price was the higher of the average of the weekly high and low of closing prices of shares of Ispat during the two week prior period before the announcement and the board meeting. Its open offer for over 64.72 crore shares will commence on February 12 and close on March 3.

The announcement comes a day after both announced that JSW Steel would acquire a controlling stake in Ispat for an enterprise value of around $3 billion. JSW Steel, the Sajjan Jindal-run company, will first pick up over 41 per cent stake for Rs 2,157 crore.

The public announcement by Enam Securities, managers to the offer, contained more details on the deal.

It said according to the subscription cum shareholders agreement (SSA) between the acquirers and promoters of Ispat Industries, the Mittals will not acquire any shares of Ispat at any time which will see their shareholding rising above 26 per cent. They have also agreed to not acquire any shares through secondary acquisitions from the stock market.

JSW Steel will be exclusively entitled to the benefit of Sebi regulations, which permit further acquisitions by the promoters without triggering an open offer.

On the BSE, the Ispat scrip gained 11.32 per cent to close at Rs 23.60.