JSPL bids for majority stake in Zimbabwe steelworks

The Naveen Jindal-controlled Jindal Steel & Power Ltd (JSPL) has bid for majority control in Zimbabwe’s largest steelworks, Zimbabwe Iron & Steel Company (Ziscosteel).

“We have submitted the price bid,” the company’s Director and Group Chief Financial Officer Sushil Maroo confirmed, without divulging much details. However, he added the company was looking for opportunities that made a strategic fit. JSPL is one of five bidders that have submitted the price bid for Ziscosteel. ArcelorMittal South Africa is also believed to be in the race.

Ziscosteel is about 89 per cent owned by the government of Zimbabwe, which was looking to divest 60 per cent as part of its privatisation programme. The bids of JSPL and ArcelorMittal were kept out earlier, as the government did not want large companies to take over the state-owned plant. However, takeover guidelines were redefined towards the end of August.

Ziscosteel has a capacity of about a million tonnes and produces long products that are primarily used in the construction sector. Apart from the steelworks, Ziscosteel owns an iron ore mine in Zimbabwe.