The revision came after ACCIL’s resolution professional reached out to JSW Steel, following which a meeting was held in New Delhi last week.
Mumbai: JSW SteelNSE -0.47 %, the lone bidder for Asian Colour Coated Ispat Ltd., has increased its offer for the company by 25% to Rs 1,500 crore, a person aware of the development said.
The revision came after ACCIL’s resolution professional reached out to JSW Steel, following which a meeting was held in New Delhi last week.
JSW Steel had initially offered Rs 1,200 crore, of which Rs 800 crore would go to secured lenders including State Bank of India and Punjab National BankNSE 1.48 % and Rs 400 crore would go to unsecured lenders led by Axis BankNSE 0.81 %.
ET reported last month that the resolution professional had sought an extension of the bid deadline, even after JSW Steel had already made a binding offer for the asset. People aware of the matter told ET that resolution professional Kuldip Kumar Bassi found the bid unsatisfactory because banks would have had to forgo 76% of their loans to ACCIL, which has debt of Rs 5,000 crore.
The resolution professional had also received fresh interest for the asset from TPG Capital, Kotak Mahindra Bank NSE 0.21 % and Blackstone-backed International Asset Reconstruction Company even as the 270-day period expired on April 16.
The New Delhi bench of the National Company Law Tribunal is scheduled to hear the matter on May 13. Voting on JSW Steel’s revised offer may take place on Thursday or Friday, the person said. Bassi and JSW Steel declined to comment.
JSW Steel is almost tripling its colour coated steel capacity to 2 million tonnes over a year and a half as demand for the value-added product rises. ACCIL makes cold-rolled, galvanised and colour coated steel products and the acquisition of its 300,000-tonne capacity fits into JSW’s strategy of enhancing its downstream capacity.
ArcelorMittal had also initially shown interest in ACCIL but refrained from bidding until the acquisition of Essar Steel goes through.
