ARCELORMITTAL RAISES BID FOR ESSAR STEEL TO ₹42,000 CRORE

MUMBAI: ArcelorMittal SA has increased its offer to acquire Essar Steel Ltd to ₹42,000 crore with an additional equity infusion of ₹8,000 crore over a period of time, said one of the lenders to Essar Steel, who did not wish to be named.

The revision has raised ArcelorMittal’s total bid for Essar Steel to ₹50,000 crore. On Friday, Essar Steel’s committee of creditors (CoC) declared ArcelorMittal the H1 bidder for the bankrupt steel mill.

Presentations were made by ArcelorMittal and Vedanta of their respective resolution plans. ArcelorMittal had offered ₹35,000 crore plus ₹8,000 crore of equity infusion. Vedanta could only place an equity infusion offer of ₹5,000 crore.

The CoC has begun the voting process on the two bids and the results are expected to be announced on Wednesday. At least 66% of lenders have to approve of a single plan for it to be accepted at the National Company Law Tribunal (NCLT).

Last week, the creditors declared Numetal Mauritius ineligible to bid for the beleaguered steel firm as it had not paid its dues before the October 19 deadline.

However, Russia’s VTB Bank, and the largest stakeholder in the Numetal consortium, has appealed to the Supreme Court seeking permission to make a solo bid or with a new technical partner.

ArcelorMittal has settled ₹7,469 crore outstanding liabilities of Uttam Galva Steels and KSS Petron, two companies in which LN Mittal, a director in ArcelorMittal, is a promoter, clearing the barrier for eligibility to bid for Essar Steel.