Arcelor unit takes stake in India's Uttam Galva

MUMBAI, Sept 4 Fri Sep 4, 2009 10:42am EDT

MUMBAI, Sept 4 (Reuters) - Indian steel maker Uttam Galva Steels Ltd (UTTM.BO) said on Friday ArcelorMittal Netherlands, a unit of leading steel maker ArcelorMittal (ISPA.AS), had taken a stake in it and become a co-promoter of the firm.

Uttam Galva did not disclose the financial details of the deal. It said ArcelorMittal would make an open offer and nominate half the non-independent directors on the board.

Shares in Uttam Galva, valued at about $250 million, closed 10 percent higher at 113.70 rupees in a Mumbai market that up 1.9 percent on Friday.

Uttam Galva has capacity to produce 750,000 tonnes a year of galvanised steel and 1 million tonnes a year of hot and cold rolled coils at its plant in western India.

It reported annual revenues of 45 billion rupees in 2008/09. (Reporting by Prashant Mehra and Swati Pandey; )

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