Essar becomes debt-free in India; concludes sale of ports, power assets to AM/NS – Times of India
AHMEDABAD: In what is pegged as one of the largest mergers and acquisitions (M&A) deals, Ruia family-run Essar Group, on Monday announced the conclusion of transaction of its captive ports and power assets in Hazira and Pradip to leading steel maker, ArcelorMittal Nippon Steel India Limited (AM/ NS).
The sale of assets including a 270 megawatt power plant and 25 MPTA port at Hazira in Gujarat and a 12 MPTA port at Pradip in Odisha, concluded at $2.05 billion (Rs 16,500 crore). Definitive agreements for the deal were signed in August this year.
AM/ NS India – a joint venture between ArcelorMittal and Nippon Steel – will fully fund the deal and strengthen the strategic integration of its manufacturing and logistics chain.
Majority of the assets are primarily captive to the Hazira Steel Plant operation near Surat. “With this, Essar Group concluded its asset monetisation programme and completed its debt repayment of $25 billion (approximately Rs 2 lakh crore), making the group debt-free from Indian banks and financial institutions,” said Prashant Ruia, director, Essar Capital.
The privately held group currently has revenues of $15 billion (approximately Rs 1.2 lakh crore) and assets under management of $8 billion (Rs 64,000 crore) within and outside India. Essar continues to have a significant presence and substantial operating assets in each of its core verticals including energy, infrastructure and logistics, metals and mining and technology and retail.
Dilip Oommen, CEO, AM/ NS, said, “Owning these strategically located assets also supports our recently announced decision to proceed with a Rs 60,000 crore capacity expansion plan at Hazira. This includes the ability for AM/NS India to realise additional synergies from rising throughput at the port assets in both Gujarat and Odisha.”
After consolidation of its businesses over the last four years, Essar has now entered the growth phase and plans to reinvest in new assets in green and latest technologies.
Rewant Ruia, director, Essar Ports Terminals Limited (EPTL), said “We are now reinvesting in our existing operations and in building new assets, both in India and overseas, with more efficient, latest and carbon neutral new-age technologies, which will be sustainable.”
The sale of assets including a 270 megawatt power plant and 25 MPTA port at Hazira in Gujarat and a 12 MPTA port at Pradip in Odisha, concluded at $2.05 billion (Rs 16,500 crore). Definitive agreements for the deal were signed in August this year.
AM/ NS India – a joint venture between ArcelorMittal and Nippon Steel – will fully fund the deal and strengthen the strategic integration of its manufacturing and logistics chain.
Majority of the assets are primarily captive to the Hazira Steel Plant operation near Surat. “With this, Essar Group concluded its asset monetisation programme and completed its debt repayment of $25 billion (approximately Rs 2 lakh crore), making the group debt-free from Indian banks and financial institutions,” said Prashant Ruia, director, Essar Capital.
The privately held group currently has revenues of $15 billion (approximately Rs 1.2 lakh crore) and assets under management of $8 billion (Rs 64,000 crore) within and outside India. Essar continues to have a significant presence and substantial operating assets in each of its core verticals including energy, infrastructure and logistics, metals and mining and technology and retail.
Dilip Oommen, CEO, AM/ NS, said, “Owning these strategically located assets also supports our recently announced decision to proceed with a Rs 60,000 crore capacity expansion plan at Hazira. This includes the ability for AM/NS India to realise additional synergies from rising throughput at the port assets in both Gujarat and Odisha.”
After consolidation of its businesses over the last four years, Essar has now entered the growth phase and plans to reinvest in new assets in green and latest technologies.
Rewant Ruia, director, Essar Ports Terminals Limited (EPTL), said “We are now reinvesting in our existing operations and in building new assets, both in India and overseas, with more efficient, latest and carbon neutral new-age technologies, which will be sustainable.”
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