JSW Steel likely to set up distressed assets platform

Sajjan Jindal-controlled JSW Steel Ltd may team up with externalinvestorstosetupaplatform for acquiring distressed assets, a top company official said. Thegroupisopentovarious options including setting up a platform in partnership with financial sponsors as it looks for inorganicgrowthandopportunities in thedistressed assets space where a number of large steel companies are facing bankruptcy, said Seshagiri Rao, joint MD and group CFO.

“Therearevariousstructures which we are open to exploring andthisisoneofthem,”Raosaid. “Butonlywhenaspecificassetis identified and the resolution processisdecided,Iwillbeableto give a definite answer.”

Rao said the company is also activelylookingatacquisitionsin Europe, especially in the downstream segment. “If you look at assets available in Europe the capital employed per million tonneissignificantlylowerthatit is otherwise needed in India to pursue opportunities whether organic or inorganic.”

Distressed assets platforms typicallyinvolveincorporatinga separate entity to be used as an investmentvehicletoacquirethe assets.ArecentexampleisResurgent Power Ventures Pte Ltd, jointly created in Singapore in September last year by Tata Power along with private equity fund ICICI Venture, Canadian pension fund CDPQ, sovereign wealth funds State General Reserve Fund of Oman and Kuwait Investment Authority.

MUMBAI: