ArcelorMittal is understood to have revised its offer for the bankrupt Essar Steel to ₹42,000 crore, against Russia’s VTB Group-backed NuMetal’s offer of ₹37,000 crore and Vedanta’s ₹34,000 crore.
“ArcelorMittal confirms that it has submitted a revised proposal to Essar Steel India Limited’s (ESIL) Committee of Creditors (CoC) for the acquisition of ESIL,” the company said in a statement without disclosing the amount offered.
‘Value to creditors’
“The financial terms of the proposal are confidential, but represent a material increase to the previous offers made by the company. The revised offer, which includes a commitment to pay the entire amount due to the financial creditors of Uttam Galva and KSS Petron, therefore, represents unprecedented value to all concerned creditors,” said the company.
“Through the revised offer, ArcelorMittal demonstrates its serious commitment to India, creditor banks and all ESIL’s stakeholders,” the statement added.
“ArcelorMittal, in a letter to the lenders, expressed its willingness to pay ₹7,000 crore due to the lenders of Uttam Galva and KSS Petron. Paying up ₹7,000 crore is different from showing intent to pay. Unless, they pay ₹7,000 crore unconditionally, their offer of ₹42,000 crore for Essar Steel will have no meaning,” said a person with knowledge of the development.
The National Company Appellate Law Tribunal (NCALT) had ordered ArcelorMittal to pay ₹7,000 crore to the lenders of Uttam Galva and KSS Petron (in which ArcelorMittal holds stakes) by September 11 to become eligible to bid for Essar Steel.
ArcelorMittal’s letter to the lenders, it is learnt, mentions that the company would have the right to move the Supreme Court despite the revised offer being made.
NuMetal may revise its bid of ₹37,000 crore only after ArcelorMittal pays the ₹7,000 crore to the lenders of Uttam Galva and KSS Petron, the deadline for which expires on September 11, said a source.
Asked about the possibility of NuMetal revising its bid, a spokesperson said, “We have not been called by the CoC as of now. As and when they call us for discussion, we will update.”
Vedanta Limited is unlikely to revise its offer of ₹34,000 for Essar Steel, sources added.
The National Company Law Appellate Tribunal on Friday had also ruled as eligible the second bid of NuMetal for the debt-ridden Essar Steel.
