ASPL incorporated a wholly-owned subsidiary – Arjas Modern Steel Pvt Ltd (AMSPL) on November 12 to enter into a definitive slump sale agreement with MSL.
The management expects the acquisition to be completed by March 2021, subject to the required approvals.
MSL, incorporated in 1974, operates a 150,000 ton (t) manufacturing facility at Mandi Gobindgarh for low-alloy and carbon steel-rolled products. The company, listed on BSE, primarily caters to the auto industry.
MSL’s accounts with lenders have become non-performing assets; however, its manufacturing facility is operational and has no technical issues.
The transaction is on a slump-sale basis and according to the agreement, the existing dues of MSL’s financial creditors will be settled through the sale proceeds and ASPL will not assume any existing borrowings of MSL. The key approvals awaited are from MSL’s financial creditors and the National Company Law Tribunal.
The acquisition purchase consideration, of ₹86 crore, is to be paid by ASPL via AMSPL upfront in cash.
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Denne historien er fra December 2020-utgaven av Steel Insights.
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Steel's Net Zero mission
The country’s commitment to achieving Net Zero within a targeted timeframe will now propel its steel sector towards a sustainable future in line with global trends.
Fuel Price Hike, Supply Chain Disruption Hurt Festive Sales
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Seaborne coking coal offers remain range-bound
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Global crude steel output down 8% in September
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MOIL embarks on expansion projects
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The 12 major Indian ports handled 27 mt of iron-ore during H1 of 2021, down by 17% from 33 mt recorded for the corresponding period of previous year.
Shrinking China output to boost India exports
“In the third quarter of 2021, the company actively responded to the pressure from external policies, such as production curtailment and dual control system on energy consumption and intensity, as well as coal resource shortage and surging prices.” Baoshan Iron and Steel Co Ltd
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Indian Railways in April-September of 2021 (H1) transported 84 mt of iron ore, up by 25% over 67 mt during April-September 2020.
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India’s crude steel production in September 2021 grew 7.2 percent to 9.547 million tons (mt) over September 2020 but was down by 3.2 percent from August 2021 output, provisional steel ministry data showed.
“Five enablers: way forward to sustainable cleaner steel”
Right and scalable technology, appropriate policy guidance by government, access to finance to fund transition, willingness of customers to pay for cleaner products and infrastructure for use of new technologies are the need of the hour for the sustainable and cleaner steel industry, according to Madhulika Sharma, Chief Corporate Sustainability, Tata Steel.
