VEDANTA JOINS IN RACE FOR ESSAR STEEL
New Delhi, April 2: A grouping led by world’s biggest steelmaker ArcelorMittal, mining mogul Anil Agarwal-led Vedanta and a consortium of Russia’s VTB Capital-backed NuMetal and JSW on Monday put in bids to takeover the bankrupt Essar Steel in the second round of bidding.
In the first round, NuMetal and ArcelorMittal were the only two parties that bid to buyout Essar Steel but the insolvency resolution professional overseeing the auction was advised to reject both the bids owing to their promoters being linked to defaulter companies. Revised bids were due on Monday. Sources privy to the development said three groups bid for Essar Steel.
NuMetal, majorityowned by Russia’s second largest bank VTB Group, shed Aurora Trust, which has links to Rewant Ruia — son of Essar Steel promoter Ravi Ruia, in the second round of bidding. NuMetal aligned with JSW to make the revised bid on Monday.
ArcelorMittal, which had been disqualified in the first round for being listed as a promoter of loan defaulter Uttam Galva Steel, bid along with Nippon Steel and Sumitomo Metal Corporation. This after it got declassified as a promoter of Uttam Galva Steel.
Sources said Vedanta was the surprise entrant today. Vedanta has already won a bid to acquire bankrupt Electrosteel Steels Ltd in an insolvency auction.