Tata Steel arm to buy govt stake in Neelachal Ispat for Rs 12,100 crore


In its second acquisition of a public sector undertaking (PSU) within a week, the Tata group has bagged a majority stake in Nigam (NINL), giving a strong push to the government’s privatisation drive, showcasing the interest of marquee private sector investors in the Centre’s assets.

The Alternate Mechanism, comprising Union Ministers Nitin Gadkari, Nirmala Sitharaman, and Piyush Goyal, approved the divestment of the 93.7 per cent stake held in by four central PSUs and two of the Odisha government, to Long Products (TSLP) at an enterprise value of Rs 12,100 crore.




The reserve price for the PSU was set at Rs 5,616.97 crore, and approved by the Cabinet Secretary-headed Core Group of Secretaries on Divestment. The Tata Group arm beat bids submitted by two other bidders, including a consortium of Jindal Steel & Power and Nalwa Steel and Power, and JSW Steel.

As the Centre does not directly own any stake in NINL, the sale will not lead to any divestment receipts for the exchequer.

owns a 74.91 per cent stake in Long Products. The buyer will pay 10 per cent of the bid amount which will be deposited in an escrow account. Based on the bidders’ demand, the government amended the earlier clause of depositing 100 per cent of the bid amount on the date of execution.

On the closure date of the transaction, shares will be transferred to the new buyer and the balance will be utilised in accordance with the waterfall agreement signed among the selling shareholders. Part-sale proceeds would be infused into the company to the extent of the liabilities, which will be set-off and the balance in the escrow account will be given to selling shareholders proportional to their shareholding.

According to the preliminary information memorandum, the amount paid by the bidder would be used towards settling labour dues, operational creditors, commercial lender debt, promoter debt and purchasing of 93.7% of shareholding of

According to a statement, the Letter of Intent (LoI) is being issued to Tata Steel Long Products, inviting it to sign the share purchase agreement.

represents a critical and strategic acquisition for TSLP with around one million tonne (mt) per annum of steelmaking capacity, 2,500 acres of land for future growth and iron ore reserves of around 100 mt. Tata Steel lost no time in outlining an expansion plan. The acquisition of NINL provides a significant opportunity for Tata Steel to not only restart the 1 mt per annum steel plant expeditiously but also begin work immediately to build a 4.5 mt per annum state-of-the-art long products complex in the next few years, and further expand it to 10 million tonne by around 2030,” the company said.

Tata Steel said that the total consideration of Rs 12,100 crore reflects the enterprise value (including all recorded liabilities) as part of the acquisition of 93.7 per cent equity stake in NINL.

The company said that the acquisition was being financed through a combination of internal accruals and bridge loans which were expected to be paid down through internal generation of Tata Steel over the next few quarters.

“The transaction is scheduled for closure within the next couple of months as per the process timelines announced by DIPAM and Government of India,” Tata Steel further said.

ALSO READ: Govt approves sale of NINL to Tata Steel Long Products for Rs 12,100 cr

“The biggest advantage of privatisation will be to the local economy as the strategic buyer will be able to revive a closed plant, bring in modern technology, best managerial practices and infuse fresh capital, which will help in augmenting the capacity of the plant,” the Ministry of Finance said in a statement.

“This will help in creating new jobs by creation of ancillary industries and supplier’s network,” the statement added.

This is the first time a public sector steel manufacturing company has been privatised in India.

The new buyer will have to retain employees of NINL for one year.

The buyer will also be bound to follow the terms of the voluntary retirement scheme applicable for central PSUs, whenever such a decision is taken.

As reported by Business Standard earlier, the government had acceded to most demands of bidders, including reducing the lock-in period for sale of assets, excluding land and mining leases to one year from the date of completion of sale, from the earlier three years proposed by the government.

The promoter of NINL is MMTC, with the PSU owning 49.78 per cent stake in the firm State-owned National Mineral Development Corporation owns 10.10 per cent, and MECON and Bharat Heavy Electricals hold 0.68 per cent each. Odisha government-owned Industrial Promotion and Investment Corporation of Odisha (IPICOL) and Odisha Mining Corporation (OMC) own 12 per cent and 20.47 per cent stake in NINL.

The reserve price for the PSU was set at Rs 5,616.97 crore, and approved by the Cabinet Secretary-headed Core Group of Secretaries on Divestment.

The Tata Group arm beat bids submitted by two other bidders, including a consortium of Jindal Steel & Power and Nalwa Steel and Power, and JSW Steel. As the Centre does not directly own any stake in NINL, the sale will not lead to any divestment receipts for the exchequer.

Tata Steel owns a 74.91 per cent stake in Tata Steel Long Products. The buyer will pay 10 per cent of the bid amount which will be deposited in an escrow account. Based on the bidders’ demand, the government amended the earlier clause of depositing 100 per cent of the bid amount on the date of execution.

On the closure date of the transaction, shares will be transferred to the new buyer and the balance will be utilised in accordance with the waterfall agreement signed among the selling shareholders. Part-sale proceeds would be infused into the company to the extent of the liabilities, which will be set-off and the balance in the escrow account will be given to selling shareholders proportional to their shareholding.

According to the preliminary information memorandum, the amount paid by the bidder would be used towards settling labour dues, operational creditors, commercial lender debt, promoter debt and purchasing of 93.7% of shareholding of NINL.

According to a statement, the Letter of Intent (LoI) is being issued to Tata Steel Long Products, inviting it to sign the share purchase agreement.

“NINL represents a critical and strategic acquisition for TSLP with around 1 mtpa of steelmaking capacity, 2,500 acres of land for future growth and iron ore reserves of around 100 mt. Tata Steel lost no time in outlining an expansion plan. The acquisition of NINL provides a significant opportunity for Tata Steel to not only restart the 1 mt per annum steel plant expeditiously but also begin work immediately to build a 4.5 mtpa state-of-the-art long products complex in the next few years, and further expand it to 10 mt by 2030,” the firm said.

  • Other bidders included consortium of Jindal Steel & Power and Nalwa Steel and Power; and JSW Steel
  • Reserve price was set at Rs 5,617 crore
  • NINL owes debt and liabilities of over Rs 6,600 crore
  • LoI is being issued to Tata Steel Long Products
  • Employee lock-in period to be one year; staff dues to be given highest priority
  • As the Centre does not directly own any stake in NINL, the sale will not lead to any divestment receipts for the exchequer.





Source link

istanbul escort aksaray escort arnavutköy escort ataköy escort avcılar escort avcılar türbanlı escort avrupa yakası escort bağcılar escort bahçelievler escort bahçeşehir escort bakırköy escort başakşehir escort bayrampaşa escort beşiktaş escort beykent escort beylikdüzü escort beylikdüzü türbanlı escort beyoğlu escort büyükçekmece escort cevizlibağ escort çapa escort çatalca escort esenler escort esenyurt escort esenyurt türbanlı escort etiler escort eyüp escort fatih escort fındıkzade escort florya escort gaziosmanpaşa escort güneşli escort güngören escort halkalı escort ikitelli escort istanbul escort kağıthane escort kayaşehir escort küçükçekmece escort mecidiyeköy escort merter escort nişantaşı escort sarıyer escort sefaköy escort silivri escort sultangazi escort suriyeli escort şirinevler escort şişli escort taksim escort topkapı escort yenibosna escort zeytinburnu escort porno 1080p porno izle 4k porno izle 720p porno izle abella danger alman alman porno alman porno izle aloha tube porno amatör amatör porno amatör porno izle anal anal porno anal porno izle arap porno asa akira porno asyalı porno bangbros porno bangbros porno izle banyoda sikis başörtülü porno beeg porno izle beyaz tenli porno izle biseksuel porno izle bisexsuel porno brandi love porno brazzers brazzers porno izle canli porno canli porno izle çinli porno çinli porno izle ensest porno ensest porno izle ensest seks erotik porno erotik porno izle esmer porno esmer porno izle etek altı fake agent fake taxi fake taxi porno fantazi pornoları fantezi porno izle fetiş porno fetiş porno izle fetish fransız porno fransız porno izle full hd hg porno izle gangbang porno genç kız porno izle genç kız sikişi genç teen porno izle gizli çekim porno gizli çekim pornosu grup pornosu grup porno grup porno izle hd pornolar hd porno hd porno izle hemşire porno hemşire pornosu hizmetçi porno hizmetçi porno izle ingiliz porno japon pornoları japon porno kızlık bozma kızlık bozma porno izle konulu porno konulu porno izle koreli porno köylü pornoları kumral porno kumral porno izle latin pornoları latin porno latin porno izle lezbiyen pornoları lezbiyen porno lezbiyen porno izle lisa ann porno liseli pornoları liseli porno liseli porno izle manken porno manken porno izle masaj porno izle masturbasyon porno izle masturbasyon pornoları mature porno mia khalifa porno mia malkova porno milf porno izle mobil porno mobil porno izle öğrenci porno izle öğretmen porno izle okul porno izle olgun kadın pornosu olgun porno oral porno oral porno izle oral seks porna izle pornhub pornhub porno izle porno film izle porno indir porno izle porno resimler porno star porntube porno izle redtube redtube pornoları riley reid porno rokettube rus pornoları rus porno rus porno izle sakso blowjob porno izle sarışın pornoları sarışın porno sarışın porno izle sarışın pornoları sekreter porno shemale sikiş sikiş sikiş izle şişman porno siyahi pornoları suriyeli pornoları swinger porno tecavüz porno teen porn türbanlı pornoları türbanlı porno türk pornoları türk porno türk porno izle türkçe altyazılı porno türkçe altyazılı porno izle xhamster pornoları xhamster porno xhamster porno izle xnxx xnxx porno xnxx porno izle xvideos xvideos porno izle yaşlı porno yeşilçam porno izle youjizz youporn youporn porno izle zenci porno güvenilir bahis siteleri bahis siteleri casino deneme bonusu casino siteleri deneme bonusu para yatırma bonusu bahis siteleri casino siteleribahis sitesi para yatırma