Tata Steel highest bidder for both Bhushan assets

Valuation bid for the assets not immediately known, but Tata Steel is likely to win both

Tata Steel, Bhushan assets, Bhushan Steel, TV Narendran, JSW Living, Insolvency & Bankruptcy Code, Dhenkanal, odisha, JSW Group 
The company informed the exchanges that a broad summary of these resolution plans were presented by the resolution professional to the Committee of Creditors (CoC) last week. (Reuters)

Tata Steel is understood to be the highest bidder for both Bhushan Power and Steel and Bhushan Steel, which are undergoing a debt resolution process under the Insolvency and Bankruptcy Code, 2016. While the valuation bid for the assets is not immediately known, sources in the industry indicate that Tata Steel is likely to win both the assets. Talking to a business news channel on Monday, Tata Steel managing director and CEO TV Narendran said: “We have been interested in these assets (Bhushan) right from the beginning because they are in the eastern region and we believe that there is a lot of synergy that we can get out of these assets”. However, Narendran did not confirm whether the company has won the bid stating that he’s yet to hear about it formally. At another interaction, on being asked whether JSW’s bid for these assets was not as aggressive, JSW Group chairman Sajjan Jindal said: “We were quite aggressive, but they (Tata) were more aggressive than us”.

Later in the day, in a filing sent to BSE on Monday, Bhushan Steel said as part of the resolution process, the resolution professional has received resolution plans from Tata Steel, JSW Living and employees of Bhushan Steel. The company informed the exchanges that a broad summary of these resolution plans were presented by the resolution professional to the Committee of Creditors (CoC) last week. “The RP and its advisers will now review these plans so as to ensure that these plans are in conformity with the provisions of the Insolvency & Bankruptcy Code, 2016 and additional requirements as stipulated by the CoC in the process document. Once the compliant resolution plans are identified, another meeting of the CoC will be convened to present the compliant plans for the consideration of the CoC,” the company statement said.

If Tata Steel wins both the assets, it will lead to a capacity addition of around 6 million tonnes per annum on account of Bhushan Steel, promoted by the Singals. Tata Steel has a total domestic steel capacity of around 13 million tonnes. Bhushan Steel has plants in Ghaziabad, Uttar Pradesh; Khopoli, Maharashtra; and Dhenkanal, Odisha. According to Capitaline, Bhushan Steel’s total debt stands at Rs 49,958 crore as of March 2017. It reported a net loss of Rs 3,615 crore in 2016-17 on net sales of Rs 13,703 crore. Vijaykumar Iyer from Deloitte was appointed as the resolution professional. Bhushan Power & Steel has a total debt of Rs 37,248 crore as of March 2016, while the company reported net loss of Rs 2,436 crore on net sales of Rs 7,700 crore.

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