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Vedanta gets regulatory nod for Electrosteel takeover

Reuters 

(Reuters) - said on Tuesday it got approval from India's designated court for cases to acquire Electrosteel Steels Ltd.

Electrosteel is the first to get approval from the (NCLT), among a dozen of the country's biggest loan defaulters which were pushed to proceedings last year.

A unit will buy debt-ridden Electrosteel for 18.05 billion rupees ($274.96 million) and provide additional funds worth 35.15 billion rupees, the company said in a statement. (https://bit.ly/2J0AW6S)

Vedanta Ltd, the Indian unit of diversified group Vedanta Resources Plc, will hold about 90 percent of Electrosteel and the rest by Electrosteel's shareholders and financial creditors.

The funds will be used by Electrosteel to fully settle debts owed to existing financial creditors, by payment of 53.20 billion rupees. The company had received claims totalling 133 billion rupees from its creditors.

had won an auction to acquire Electrosteel last month. Tata Steel, privately held and were the other suitors for Electrosteel Steels.

($1 = 65.6450 Indian rupees)

(Reporting By Arnab Paul in Bengaluru, Editing by Sherry Jacob-Phillips and Shounak Dasgupta)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Tue, April 17 2018. 19:27 IST
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