After the successful acquisition of Bhushan Steel, Tata Steel’s plan of acquiring steel business of Usha Martin Ltd (UML) got a step closer, with the latter looking to seek shareholders’ approval for the deal. UML on Wednesday said that it will seek shareholders’ nod with regard to the sale of its steel business to Tata Steel, news agency PTI reported.
Tata Steel last month announced that it will acquire UML’s steek business for Rs 4,300-4,700 crore. The deal between the two is expected to be completed in six-nine months. Tata Steel executed definitive agreements for the acquisition of the steel business of UML through a slump sale.
“It is proposed that the steel business of UML will be acquired subject to transaction closing, for a cash consideration of Rs 4,300-4,700 crore (subject to various transaction adjustments), Tata Steel had said in a statement on September 22.
Tata Steel recently acquired bankrupt Bhushan Steel after successfully bidding for it under the Insolvency and Bankruptcy Code (IBC) law. Tata Steel’s takeover of Bhushan Steel became the first success of the IBC, with lenders taking a little haircut. Tata Group companies are also vying to acquire some other bankrupt companies such as Bhushan Power and Steel.
Tata Power’s joint venture Resurgent Power was on August 29 offered the letter of intent (LoI) by lenders of stressed Prayagraj Power Generation Company Limited (PPGCL) for offering to acquire 75% stake in the company for reportedly Rs 6,000 crore.