Consulting firm EY and law firm Luthra and Luthra advised JSW Steel on the deal.
JSW Steel has stated in the past that it will be looking greenfield growth opportunities as well as acquisitions as it looks to expand its steelmaking capacity while achieving forward integration. Its current steelmaking capacity stands at 14.3 million tonnes per annum. The company ended FY14 with a turnover of R45,298 crore and a net profit of R1,335.51 crore. As on June 30, JSW Steel had a net debt of R35,870 crore.
The enterprise value of R1,000 crore-plus net current assets of Welspun Maxsteel includes long-term debt of R1,087 crore, Welspun said in its statement. The company had identified Welspun Maxsteel as a non-core business and therefore decided to exit the same.