[av_heading heading=’How JSW, Tata Group May Gain From Acquiring Stressed Steel Assets ‘ tag=’h3′ style=’blockquote modern-quote’ size=” subheading_active=’subheading_below’ subheading_size=’15’ padding=’1′ color=” custom_font=”][/av_heading]
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31 July 2017
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Three of the four steelmakers identified by the central bank for insolvency proceedings may attract stronger peers for their assets if valuations are attractive, rating agency ICRA Ltd. said.
Bhushan Steel Ltd., Monnet Ispat & Energy Ltd., Essar Steel Ltd. and Electrosteel Steels Ltd., among the 12 companies referred for resolution under the new bankruptcy law, contribute half of the steel sector’s bad loans.
JSW Steel Ltd. has already expressed its interest in Monnet Ispat, with State Bank of India Ltd., which heads the lenders’ consortium, objecting to a deal in its current form.
The Sajjan Jindal-led company had also submitted a Rs 25,000-crore bid to banks for the debt-laden Bhushan Steel in January, Business Standard had reported. The company had informed exchanges that it continues to look for organic and inorganic opportunities to achieve its long-term vision.
JSW Steel and Tata Steel Ltd. are probably the only two Indian companies in a position to acquire the distressed assets, Rakesh Arora, market expert and a long-time watcher of the metals sector had said in June. Bloomberg Quint looks at which of these is the best fit for JSW Steel and Tata Steel.
Source-Bloomberg
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