JFE Steel announced on Tuesday the firm took additional shares in Indian major steel maker, JSW Steel and raised its ownership to 15%. JFE Steel had held nonvoting global depositary receipts (GDRs) in JSW Steel while JFE Steel exchanged some of the GDR into JSW Steel’s ordinary shares with an agreement with the firm. JSW Steel will become JFE Steel’s equity method affiliate in and after April 2012.JFE Steel had examined to raise its investment rate in JSW Steel since India’s law on takeover bid (TOB) was revised in October 2011. JFE Steel became able to take below 25% shares in JSW Steel without TOB by the law revision. JFE Steel has already sent one non-full-time board member to JSW Steel while JFE Steel has aimed to deepen the partnership with JSW Steel to strengthen productive and sales operations in India. JFE Holdings’ full-year financial forecast for fiscal 2011 (ending in March 2012) is not affected by this additional share acquisition. GDR is a security issued by a company at overseas instead of an ordinary share. JFE Steel announced investment in JSW Steel in July 2010 and took newly issued shares at 48 billion rupees (approximately 90 billion yen then).
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