Title: Tribunal upholds JSW’s bid for Bhushan Power & Steel
Mumbai: JSW Steel has moved a step closer to acquire Bhushan Power and Steel after the company law appellate tribunal upheld its Rs 19,700-crore offer.
The transaction,when completed, will strengthen JSW’s position as the largest steel producer in the country with a capacity of 23 million tonnes. JSW,controlled by billionaire Sajjan Jindal,had recently acquired the insolvent Monnet Ispat & Energy for Rs 3,700 crore.
JSW raced ahead in the bid for Bhushan Power after Tata Steel declined to up its offer of Rs 17,200 crore for the New Delhi-based bankrupt company. Subsequently Tata Steel raised objections to Bhushan Power’s creditors selecting JSW as the top bidder as,in the initial round of bidding, its Rs 17,200-crore offer after the appellate tribunal directed them to consider the proposal of Liberty House that had entered the race past the deadline. At that time, the
National Company Law Appellate Tribunal (NCLAT) had said that bids can be rejected on substantive grounds and not because of delays.
On Monday, the NCLAT said that Tata Steel’s appeal is “not maintainable” and that the creditors have the right to negotiate better terms with the bidders.
The ordersaid that creditors can grant opportunities to all eligible parties to revise their financial offers so that they can obtain the best resolution
JSW had raised its bid from the earlier Rs 17,000 crore to Rs 19,700 crore for Bhushan Power,while Liberty House of UK increased its bid by Rs 500 crore to
Rs 18,500 crore. On the other hand,Tata Steel had maintained its original offer of Rs 17,200 crore. Bhushan Power owes Rs 47,000 crore to financial creditor
and Rs 780 crore to operational creditor.