The Delhi Bench of National Company Law Tribunal on Monday approved the resolution plan submitted by JSW Steel to acquire bankrupt steel company Asian Colour Coated Ispat Ltd (ACCIL) for Rs 1,550 crore.
“JSW Steel Coated Products, wholly-owned subsidiary of JSW Steel, to acquire Asian Colour Coated with certain modification in the resolution plan approved by the lenders,” JSW Steel said in a statement. The written order is awaited.
In 2018, ACCIL was included in the Reserve Bank of India’s second list of defaulters on which banks were asked to take corrective action. State Bank of India, Punjab National Bank and JM Financial are among the lenders to Asian Colour Coated Ispat.
Asian Colour was listed for insolvency the same year, which saw JSW Steel make an initial offer of Rs 1,200 crore. After this, the promoters of the company took the case to NCLAT over a legal issue on the land owned by the company.
In August 2020, US-based venture capital firm Interups made a counter offer of Rs 2,000 crore to JSW Steel’s deal. However, NCLT has now chosen JSW Steel as the acquirer.
ACCIL has an annual capacity of 1 million tonnes with around 300,000 tonnes of cold-rolled steel and colour-coated steel. The company has manufacturing facilities in Delhi and Mumbai, and also caters to markets across, Europe, Africa, Latin and North America.
With this acquisition, JSW Steel has successfully acquired three stressed assets through bankruptcy court–one being Monnet Ispat and Energy Ltd for Rs 2,875 crore, Vardhman Industries for 63 crores and now ACCIL. The company is also in the final stages of completing the Bhushan Power and Steel (BPSL) acquisition.
Recently, JSW Steel expressed interest to bid for the insolvent Gontermann Peipers (India), owned by Pramod and Vinod Mittal, younger brothers of Lakshmi Mittal, the promoter of ArcelorMittal.
Source: Economic Times