ArcelorMittal, along with Nippon Steel and Sumitomo, and Vedanta are other two bidders
ArcelorMittal along with Nippon Steel and Sumitomo, Vedanta, and Numetal along with JSW Steel as an investor have put in their bids for Essar Steel in the second round of bidding which opened on Monday.
DNA Money on Monday reported that three companies or joint ventures are likely to bid for Essar Steel by quoting lenders who are in touch with potential suitors.
Numetal said in a release, "JSW Steel in the capacity of an investor joined Numetal and Steel Pvt Ltd in submitting a binding bid for Essar Steel. The company said that JSW had joined the consortium as an investor. The bidding was open only to those bidders who had put in their expression of interest in the first round of bidding."
Essar Steel Hazira, Gujarat, houses fully integrated world-class steel facility and is one of the most well-planned and sophisticated steel complexes which will give a huge advantage to these bidders.
Essar Steel Hazira complex is India's largest single-location flat steel plant. The Hazira facility is the only plant in the world to have the three prominent ironmaking technologies at a single location – Blast Furnace, Midrex (DRI) and Corex. It houses the largest Direct Reduced Iron (DRI) plant in the world with six modules and a capacity of 6.8 million tonne per annum.
Anil Agarwal-promoted Vedanta had pulled out in the first round of bidding. Vedanta, which is interested for a big play in India, is keen to bag a large facility to expand its business in India. It has already acquired Electrosteel Steels in an insolvency auction.
Essar Steel, which owes Rs 37,280 crore to the banks, is fighting a bankruptcy battle in the National Company Law Tribunal (NCLT) set up under the new Insolvency and Bankruptcy Code, 2016.
The committee of creditors (CoC) has called for fresh bids on Monday after both the first-round bidders, ArcelorMittal and Numetal, were found ineligible.
ArcelorMittal's bid was rejected in the first round as it had a 29% stake in bankrupt firm Uttam Galva, which is now sold back to its promoters, the Miglani family's Sainath Trading Company. Uttam Galva had defaulted on a Rs 5,000 crore loan. ArcelorMittal applied to the market regulator Sebi to remove its name from the company records. Uttam Galva has also made a one-time settlement offer to the lenders to settle its defaults.
The Numetal consortium, led by VTB Capital of Russia, now will have JSW Steel as an investor in the place of Arora Enterprises, a trust controlled by Rewant Ruia, son of Ravi Ruia, one of the founders of Essar Steel. Other key shareholders of Numetal include TyazhPromExports (TPE) of Russia and Indo International.
ArcelorMittal and Numetal had earlier approached the Ahmedabad bench of the NCLT against the resolution professional's decision to disqualify them. It will be coming up for hearing on April 4.
WHAT BIDDERS GET?
- Essar Steel Hazira complex is India's largest single-location flat steel plant.
- It houses the largest Direct Reduced Iron (DRI) plant in the world with six modules
- 6.8 million tonne per annum-- Capacity of the Essar's Hazira plant
- Rs 37,280 crore – Essar Steel owes to the banks
SIMMERING DEAL
- Vedanta, which is interested for a big play in India, is keen to bag a large facility to expand its business in India
- The lenders had called for fresh bids on Monday after both the first-round bidders, ArcelorMittal and Numetal, were found ineligible
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Essar Steel")
)
Essar Steel Hazira, Gujarat, houses fully integrated world-class steel facility and is one of the most well-planned and sophisticated steel complexes which will give a huge advantage to these bidders.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}