On December 27, Thai steelmaker Sahaviriya Steel Industries Pcl (SSI) announced that it is seeking to raise about Baht 6 billion ($199 million) in a private placement and rights issue that will contribute to the financing of the acquisition of Corus' Teesside Cast Products (TCP) in Redcar, Teesside, UK, from Indian steel giant Tata Steel.
As SteelOrbis previously reported, Tata Steel's subsidiary Corus UK Limited and SSI signed a memorandum of understanding in August for the potential sale of TCP to SSI at a price of approximately US$500 million, with hopes to complete the process in early 2011.
SSI said that it will sell 2.62 billion shares at THB 1.40 each to existing shareholders at a ratio of five existing shares for a new share. It would also offer another 2.62 billion shares in a private placement at a price of at least THB 1.20 a share.
Pointing out that the acquisition will increase the company's output to 3 million mt in 2012, Win Viriyaprapaikit, president of SSI, said, "This transaction will enable SSI to fulfill its long-standing objective of become"
Corus, now named Tata Steel Europe, had mothballed TCP in February 2011 after failing to find long-term sales partners.