Electrosteel Steels spells out steps for completion of acquisition by Vedanta

Electrosteel Steels Ltd today spelled out steps to be taken for completion of its takeover by Vedanta Star Ltd and subsequent delisting from stock exchanges.

In a filing to the BSE, Electrosteel Steels said since the liquidation value of the company as determined by the Resolution Professional is not sufficient to cover the debt of financial creditors in full, hence the liquidation value of the company in the hands of equity shareholder is nil.

However, it added that "as per the Resolution plan, the shareholder of the company will be paid Rs 0.19 per equity share they hold as on date (Pre-capital Reduction Price).

"On completion of Transaction Steps, Vedanta Star Ltd will make the delisting offer to the then shareholders of the company. The equivalent per share exit price post completion of Transaction Steps is INR 9.54 per equity share (Post-capital Reduction Price)," Electrosteel Steels said.

In March, Vedanta was declared as successful resolution applicant by the committee of creditors (CoC) for Electrosteel Steels Ltd under the Corporate Insolvency Resolution Process of the Insolvency and Bankruptcy Code, 2016.

Yesterday, Vedanta Ltd said it has deposited an upfront amount of Rs 5,320 crore in the escrow account of Electrosteel Steels Ltd.