Sajjan Jindal-led JSW Steel on Tuesday said it will acquire 74% stake in JSW Praxair Oxygen Pvt Ltd (JPOPL) for Rs.240 crore in cash.
JPOPL produces industrial gases such as oxygen, nitrogen and argon. It has two air separation plants, each with a capacity of 2,500 tonnes per day, in Bellary District of Karnataka. “JSW Steel has executed a share purchase agreement with Praxair India Pvt Ltd to acquire their entire shareholding of 74% in JPOPL for a cash consideration ofRs.240 crore,” it said in a regulatory filing. JSW Steel holds 26% of the equity shares of JPOPL and post the aforesaid acquisition, JPOPL would become a wholly-owned subsidiary of the company, it added. The firm sources industrial gases from JPOPL amongst others at prices based on long term contracts.