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Essar turns into debt-free in India; concludes sale of ports, energy belongings to AM/NS – Occasions of India

AHMEDABAD: In what’s pegged as one of many largest mergers and acquisitions (M&A) offers, Ruia family-run Essar Group, on Monday introduced the conclusion of transaction of its captive ports and energy belongings in Hazira and Pradip to main metal maker, ArcelorMittal Nippon Metal India Restricted (AM/ NS).
The sale of belongings together with a 270 megawatt energy plant and 25 MPTA port at Hazira in Gujarat and a 12 MPTA port at Pradip in Odisha, concluded at $2.05 billion (Rs 16,500 crore). Definitive agreements for the deal had been signed in August this 12 months.
AM/ NS India – a three way partnership between ArcelorMittal and Nippon Metal – will totally fund the deal and strengthen the strategic integration of its manufacturing and logistics chain.
Majority of the belongings are primarily captive to the Hazira Metal Plant operation close to Surat. “With this, Essar Group concluded its asset monetisation programme and accomplished its debt reimbursement of $25 billion (roughly Rs 2 lakh crore), making the group debt-free from Indian banks and monetary establishments,” mentioned Prashant Ruia, director, Essar Capital.
The privately held group at the moment has revenues of $15 billion (roughly Rs 1.2 lakh crore) and belongings beneath administration of $8 billion (Rs 64,000 crore) inside and outdoors India. Essar continues to have a major presence and substantial working belongings in every of its core verticals together with power, infrastructure and logistics, metals and mining and expertise and retail.
Dilip Oommen, CEO, AM/ NS, mentioned, “Proudly owning these strategically positioned belongings additionally helps our not too long ago introduced determination to proceed with a Rs 60,000 crore capability growth plan at Hazira. This consists of the flexibility for AM/NS India to grasp extra synergies from rising throughput on the port belongings in each Gujarat and Odisha.”
After consolidation of its companies over the past 4 years, Essar has now entered the expansion section and plans to reinvest in new belongings in inexperienced and newest applied sciences.
Rewant Ruia, director, Essar Ports Terminals Restricted (EPTL), mentioned “We are actually reinvesting in our present operations and in constructing new belongings, each in India and abroad, with extra environment friendly, newest and carbon impartial new-age applied sciences, which might be sustainable.”

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