ArcelorMittal revises proposal to acquire Essar Steel
World’s leading steel giant ArcelorMittal has sweetened its offer for Essar Steel, as the bids received in the second round for the debt-ridden firm were opened by its lenders Monday.
Without disclosing the amount, the Luxembourg-headquarterd firm said that it has submitted a revised proposal to Essar Steel India Ltd’s (ESIL) Committee of Creditors (CoC). The revised offer also includes a commitment to pay ₹7,000 crore dues to the financial creditors of Uttam Galva and KSS Petron to be eligible in the race to acquire Essar Steel.
“ArcelorMittal confirms that it has today submitted a revised proposal to Essar Steel’s Committee of Creditors for the acquisition of ESIL,” ArcelorMittal said in a statement Monday.
“The financial terms of the proposal are confidential, but represent a material increase to the previous offers made by the company,” it added. The revised offer, which includes a commitment to pay the entire amount due to the financial creditors of Uttam Galva and KSS Petron, therefore represents unprecedented value to all concerned creditors, the statement added.
“Through the revised offer ArcelorMittal demonstrates its serious commitment to India, creditor banks and all ESIL’s stakeholders,” it said. Apart from ArcelorMittal, Russia’s VTB Group-backed Numetal Ltd and mining baron Anil Agarwal-led Vedanta are in the race to acquire Essar Steel.
The Resolution Professional, overseeing the auction of Essar Steel to recover over ₹49,000 crore of unpaid loans had sent emails to all the three bidders to be present Monday for the opening of the second round of bids. This followed a National Company Law Appellate Tribunal’s (NCLAT) judgement last week on the eligibility of bids. It had ruled that Numetal’s ₹37,000crore second-round bid for Essar Steel is valid, but asked rival bidder ArcelorMittal to clear ₹7,000 crore dues of its previously associated firms within three days to qualify for the acquisition.
NEW DELHI: