“A further payment of $74.26 million to creditors, towards injection of working capital and for a capital expenditure. The payments towards the creditors and members to the company will be paid in a staggered manner”, the company said.
The acquisition will help Balasore Alloys in creating synergies and in expanding its business base to different parts of the world.
“Consequent upon a scheme of arrangement sanctioned by the High Court of Zimbabwe on 20 December2017 received by us on 8 January 2018, Balasore Alloys, by virtue of the scheme being approved by the requisite margins of members and creditors of Zimbabwe Alloys (ZAL), shall acquire either by itself and/or through its nominees and affiliates, 70% shares of ZAL, currently under Judicial Management,” Balasore Alloys said in a statement.
ZAL holds 19,780 hectares of mining areas in different parts of Zimbabwe, which has proven resources of 72.25 million tonnes of chrome ore. Zimbabwe Alloys Chrome (Pvt) Ltd, a wholly-owned subsidiary of ZAL has a ferro chrome plant.
The scheme is subject to fulfillment of certain conditions precedent contained in the scheme of arrangement.
In past three trading sessions, the stock of Balasore Alloys surged 22% from Rs 73.50 on Friday, January 5, 2018.
At 10:28 AM; it was up 12% at Rs 89 against 0.05% rise in the S&P BSE Sensex. The trading volumes on the counter jumped nearly three-fold with 1.4 million shares changed hands on BSE, the exchange data shows.