JSW Steel receives LoI to buy Bhushan Power & Steel: Media report

The development brings JSW Steel closer to acquiring Bhushan Power, provided there is no arbitrary insertion of clauses by the IRP or the stressed company’s Committee of Creditors.

Feb 13, 2019 08:02 IST India Infoline News Service

JSW Steel
JSW Steel has received a Letter of Intent (LoI) from Bhushan Power and Steel, declaring it the highest bidder for the stressed asset, as per media reports. The media report stated that JSW Steel has to review the approved resolution plan sent along with the letter before accepting the offer.

The development takes JSW Steel closer to acquiring Bhushan Power, provided there is no arbitrary insertion of clauses by the IRP or the stressed company’s Committee of Creditors.

JSW Steel had made an offer of Rs19,650cr to acquire Bhushan Power, which includes an upfront payment of Rs19,300cr with another Rs350cr earmarked for operational creditors, the media report added. 

Meanwhile, the company has reported crude steel production at 14.53 lakh ton in January 2019, lower by 1% compared to January 2018.

Production of flat-rolled products rose 3% to 10.40 lakh ton while production of long rolled products declined 7% to 3.44 lakh ton in January 2019 compared to January 2018.

Shares of JSW Steel Ltd share price is currently at Rs273.40, up Rs1.6, or 0.59%, from its previous close of Rs271.80 on the BSE. The scrip opened at Rs274.70 and has touched a high and low of Rs276.30 and Rs269.10, respectively.

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