Baosteel Resources will pick up a 5% stake in Kolkata-based Visa Steel, the company said in a statement on Friday, adding the joint venture, Visa Bao, will amalgamate with Visa Steel.
Baosteel Resources will pick up a 5% stake in Kolkata-based Visa Steel, the company said in a statement on Friday, adding the joint venture, Visa Bao, will amalgamate with Visa Steel. “The amalgamation was approved by the board of directors of Visa Steel and VISA Bao at its meeting held in Kolkata on August 21 and is subject to all necessary approvals from regulatory authorities,” it said.
Visa Bao was set up in 2008 for setting up a Ferro Chrome Plant in Odisha in which Visa Steel holds 65% stake and Baosteel holds 35% stake.
Vishal Agarwal, vice-chairman & MD, Visa Steel said, “The amalgamation of Visa Bao with Visa Steel will make Visa Steel one of the largest Ferro Chrome producers in India. The integration will improve the operational and cost efficiency of the Ferro Chrome business.”
The statement said Visa Steel is also in the process of transferring its Special Steel Business having 0.5 million TPA Special Steel Plant including blast furnace, sponge iron, steel melt shop, refining facilities and bar & wire rod mill to its subsidiary, Visa Special Steel, to create better focus and facilitate inviting strategic investor.
Visa Steel has also formed a joint venture with SunCoke Energy, USA, as a strategic investor in the Coke Business in 2013.