JSW Steel Limited said it, along with its consortium partner and private equity player AION Investments Private II Ltd, has accept the terms and conditions for the acquisition of the assets of bankrupt steelmaker Monnet Ispat and Energy Limited.
The duo were declared the successful, and only, bidders two days ago.
The bids were placed under the corporate insolvency resolution process of the Insolvency and Bankruptcy Code 2016.
The company did not clarify the bid size. However, it has been reported that the duo bid Rs 3,700 cr for the assets.
The JSW consortium was declared as the “successful resolution applicant by the Committee of Creditors of MIEL on April 10th , and has received a Letter of Intent dated April 12th,” it said today. “The consortium has accepted the terms of the LoI.”
The sale is part of extensive restructuring in the iron and steel industry, which has been hit by a cyclical downturn and an excess of debt.
The transaction requires the approval of National Company Law Tribunal and the Competition Commission of India, it added.
The decision by the creditors has created some controversy, with some saying the rescuer has some links with the bankrupt company.
JSW Steel is a part of the diversified US$ 12 billion JSW Group, which has a presence in Steel, Energy, Infrastructure, Cement, Ventures and Sports.
It is one of the biggest integrated steel companies in India with an installed steel-making capacity of 18 million tons per year.
JSW Steel’s plant at Vijayanagar in Karnataka, is the largest single location steel producing facility in the country with a capacity of 12 mln tons per year.