LNM expected to increase its shares in Iscor to 57%

LNM expected to increase its shares in Iscor to 57%

As reported by SteelOrbis yesterday, Lakashmi Mittal, the owner of LNM Group, received a one time Rand 613.3 million (approx. $95 million) remuneration as the company helped Iscor to achieve a Rand 388 million cost saving through a three year business asisstance agreement settled in November 2001. With this payment in cash instead of issuing new shares of Iscor, LNM, which is speculated to be willing to increase its shares, now has the opportunity to raise its shares in Iscor by 10% to 57%. In case the payment was made through issuing of new Iscor shares, LNM's holding in the company would only grow up to 49.8% post dilution effect.