JSW Steel to acquire Acero Junction Holdings

For cash consideration of USD 80.85 million

JSW Steel has entered into a Stock Purchase Agreement dated 28 March 2018 with JSM International, Acero Junction Holdings Inc. and Acero Junction Inc. for acquisition of 100% shares of Acero Junction Holdings Inc., a Delaware Corporation, for a cash consideration of USD 80.85 million.

The transaction is subject to fulfilment of conditions precedent and other terms as per the Stock Purchase Agreement, with a long stop date of 31 May, 2018.

Acero Junction Holdings Inc. owns 100% of the shareholding of Acero Junction Inc., which is a steel manufacturing mill that uses the electric arc furnace route to produce hot rolled coils.

The total Enterprise Value of the transaction is about USD 180.35 million, with equity value of USD 80.85 million and liabilities of USD 99.5 million, subject to closing adjustments. The acquisition shall be funded by way of a combination of internal accruals from JSW and debt to be raised at Acero Junction Inc.

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