John Cockerill India Limited has officially secured crucial regulatory clearance from the Reserve Bank of India for its revised acquisition strategy regarding John Cockerill Metals International SA. This approval allows the company to move forward with a restructured transaction totaling €24.32 million.
The Core Deal Structure
The revised acquisition replaces a previous agreement and balances cash outflow with equity adjustments. The transaction framework relies on two distinct funding components handled through an authorized dealer bank.
- Cash payment component of €5 million.
- Share-swap component valued at €19.32 million.
Preference Shares and Conversion Terms
To fund the share-swap arrangement, the company is issuing non-cumulative compulsorily convertible preference shares to its parent entity. These instruments carry specific financial parameters and conversion timelines.
- Total issue of 35,185 Compulsorily Convertible Preference Shares.
- Issue price of ₹58,028.60 per share, featuring a ₹100 face value and a ₹57,928.60 premium.
- Aggregate size of the issuance standing at ₹204.17 crore.
- Mandatory conversion into 10 equity shares each, exercisable at the allottee’s discretion or within a maximum period of 18 months from the date of allotment.
This strategic move consolidates the group’s global metals business operations under its Indian listed entity while optimizing immediate cash requirements. The company will proceed with implementation as disclosures are updated with exchange authorities.