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JSW submits revised bid for Bhushan Power & Steel, trumps Tata's, Liberty House offers

27 July, 2018 1:07 PM
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JSW submits revised bid for Bhushan Power & Steel, trumps Tata's, Liberty House offers

In a fresh twist to the auction of Bhushan Power & Steel, JSW has submitted a revised offer of over Rs 18,500 crore to buy the stressed company. The Committee of Creditors, which met in Delhi on July 27, has consequently asked for fresh bids by July 31.

Sources told Moneycontrol that Liberty House will put in a revised bid by then.

The JSW Steel offer trumps the current proposal of Tata Steel and Liberty House.

While Tata Steel had offered Rs 17,000 crore, Liberty House’s offer was at Rs 18,500 crore. All the three companies have promised to invest Rs 7,000 crore in the operations of Bhushan Power & Steel.

“The JSW Steel offer is above what Liberty House has offered,� an executive from the industry said.

The move by JSW Steel has surprised the industry as the Sajjan Jindal-company had taken a backseat after its bid in the first round was trumped by Tata Steel.

“The company has possibly made a revised bid because it is unsure how the Essar Steel auction will pan out,� said another executive.

JSW had teamed up with the Numetal consortium in the second round of auction for Essar Steel. But the resolution process has been delayed with both, Numetal and ArcelorMittal, approaching the NCLAT over the eligibility issue. The NCLAT is expected to issue an order in the coming weeks.

On July 17, the NCLAT had stayed the meeting of Committee of Creditors, which was set to vote on Tata Steel’s bid for Bhushan Power & Steel.

Bhushan Power's operations creditors had alleged that the resolution professional hadn’t allowed their representative to attend the lenders meeting.

Source: moneycontrol.com

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