JSW Steel subsidiary JSW Steel Italy has entered into a sale and purchase agreement on Thursday with Cevitaly — a wholly-owned subsidiary of Algerian company Cevital.
JSW Steel subsidiary JSW Steel Italy has entered into a sale and purchase agreement on Thursday with Cevitaly — a wholly-owned subsidiary of Algerian company Cevital — for acquisition of 100% shares of Aferpi and Piombino Logistics, and 69.27% of the share capital of GSI Lucchini for a cash consideration of 55 million euros on a cash-free, debt-free basis, the company said. FE had reported on March 1, 2018, that JSW Steel was in the final lap for acquiring Italian steelmaker Aferpi.
JSW said the transaction provides an oppotunity for the company to establish its presence in Italy with access to the European speciality steel long products market.
The transaction is proposed to be funded through a combination of internal accruals and debt at the targets. Consolidated net debt of JSW Steel stood at about Rs 38,019 crore as on March 31, 2018, down from Rs 41,500 crore sequentially. The weighted average interest cost decreased by 24 basis points in the year to 7.04%.
The possible acquisition of the Italian steelmaker comes at a time when JSW Steel is eyeing the purchase of few steel assets back home as well. While it lost Bhushan Steel and Bhushan Power and Steel to Tata Steel. It is awaiting a final NCLT nod for its proposed acquisition of Monnet Ispat.