ArcelorMittal Gets Nod as Preferred Bidder for ESIL
October 20 2018 - 3:54AM
Dow Jones News
By WSJ Staff
ArcelorMittal (MT) said it has been selected as the preferred
bidder by creditors of Essar Steel India Ltd., or ESIL, which is in
insolvency proceedings.
Luxembourg-based ArcelorMittal, one of the world's largest steel
makers, said in a news release that it was informed of the decision
by the creditors committee for the Indian company. ArcelorMittal
said it would enter into further final negotiations with the
committee.
ArcelorMittal hasn't disclosed the exact value of its bid but
has confirmed that media reports of a $5.8 billion price tag for
ESIL are broadly accurate.
On Wednesday, the steel maker said it agreed to pay around $1
billion to clear the debts of two other Indian steel companies so
that it could proceed with its bid for ESIL.
India's Supreme Court ruled this month that the European
steelmaker had to pay off the debts of Uttam Galva and KSS
Petron--two companies in which it previously held stakes--before
its ESIL bid could be considered.
ArcelorMittal's main rival in the bidding process has been
Numetal, a recently formed entity with ties to the Essar group's
founding Ruia family and backed by Russia's VTB Bank (VTBR.MZ).
--Nathan Allen contributed to this article.
(END) Dow Jones Newswires
October 20, 2018 03:39 ET (07:39 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.