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Essar Steel announced that it had entered into a sale pact worth Rs 19,000 crore with ArcelorMittal Nippon Steel for certain Ports and Power infrastructure assets that are primarily captive to Hazira steel plant operations.
The deal also includes a clause for a 50-50 joint venture partnership for building a 4 MTPA LNG terminal at Hazira, Gujarat.
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AM/NS India is a joint venture between Lakshmi Mittal-led ArcelorMittal and Nippon Steel, two of the world’s leading steel manufacturing organizations.
Rewant Ruia, Director of Essar Ports & Terminals Limited, said, “With this deal, which yields a multifold return on our investments, Essar Ports & Terminals has unlocked value for all its stakeholders and will continue to focus on building new and modern core infrastructure assets in India and overseas."
With the onset of this deal, Essar will be able to complete its plan of Rs 2,00,000 crore debt repayment and also the asset monetization programme with the Indian banking sector.
Essar's total revenues will be around 1.2 lakh crore, and its Asset Under Management (AUM) will be around $8 billion (or Rs 64,000 crore) with a variety of assets located both in India and abroad.
Prashant Ruia, Director, Essar Capital, said, “Essar is now repositioned for growth and resurgence. After consolidating our businesses over the last 4 years, we have now entered the next growth phase focused on helping build a sustainable energy future that will impact lives and livelihoods for a greener world.”
The closure of the deal is subject to a few corporate and regulatory approvals applicable to the respective assets.
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