Tata Steel Acquires 72% Stake In Bankrupt Bhushan Steel
Merely three days after the National Company Law Tribunal (NCLT) approved the Tata Steel's debt resolution plan for acquiring the controlling stake of Bhushan Steel Limited (BSL), the Tata Group announced-in a stock market filing-that it has completed the acquisition. Tata Steel will acquire 72.65% shares comprising of 79 crore shares of face value Rs 2 each. The company further announced, in the stock market filing, that the acquisition provides an inorganic growth opportunity to Tata Steel to grow in its existing line of business in flat products and leverage operating synergies.
Tata Steel further asserted that all necessary approvals such as that of Competition Commission of India and NCLT have been received. The consideration has been completed and the amount was in form of cash.
Also Read: Tribunal Admits Ericsson's Insolvency Plea Against Reliance Communications
Settlements of the amounts equivalent to Rs 35,200 crore towards financial creditors of Bhushan Steel is being undertaken as per the terms of resolution plan as approved by the NCLT on May 15, announced Tata Steel on Friday.
Also Read: Tata Steel Emerges As Top Bidder For Bhushan Steel
Bhushan Steel is a listed entity having a crude steel capacity of around 5.6 million tons along with downstream facilities of cold rolled products of around 2 mtpa. The company has its upstream facilities in Meramandali, Odisha and downstream facilities in Khopoli, Maharashtra and Sahibabad, Uttar Pradesh. The turnover for Fiscal 2017 is Rs 15,099 crore. The company was admitted under Corporate Insolvency Resolution Process on July 26, 2017 as per the Insolvency and Bankruptcy Code, 2016.
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