M&A: Essar signs USD 2.4 bn sale pact with AM/NS for infra assets
Mumbai: In one of India’s largest post-pandemic merger-and-acquisition deals, Essar Group on Thursday announced signing definitive agreements with Arcelor Mittal Nippon Steel (AM/NS) for certain ports and power infrastructure assets which are primarily captive to Hazira steel plant operations in Gujarat.
The deal is worth USD 2.4 billion (Rs. 19,000 crore). It also envisages a 50-50 joint venture (JV) partnership for building a 4 million tons per annum liquefied natural gas (MTPA LNG) terminal at Hazira, Gujarat, between Essar and ArcelorMittal, according to a company statement here.
Rewant Ruia, Director, Essar Ports & Terminals Ltd, said that with this deal, which yields a multi-fold return on the company’s investments, the firm has unlocked value for its stakeholders and will continue to focus on building new and modern core infrastructure assets in India and overseas.
With this deal, Essar will conclude its planned asset monetization program and complete the debt repayment plan of USD 25 billion (Rs. 200,000 crores), with the Indian banking sector being almost fully repaid. Essar’s aggregate revenues will stand at nearly USD 15 billion (Rs. 1.2 lakh crores) and an AUM (Asset Under Management) of USD 8 billion (Rs. 64,000 crores) comprising various assets spread across India and overseas.
The closing of the M&A deal is subject to the completion of certain corporate and regulatory approvals applicable for respective assets.
(VP)
