Lenders approach Tata Group, JSW to buy out Essar Steel

But the steel giants see a lot of problems. Tata Steel says the bankers don't have enough control over Essar Steel for it to go ahead with the deal, said CNBC-TV18's Latha Venkatesh, quoting sources. For JSW Steel, buying the Essar arm is tricky as it would involve other multi-corporate deals.
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Mar 28, 2016, 09.33 AM | Source: Moneycontrol.com

Lenders approach Tata Group, JSW to buy out Essar Steel

But the steel giants see a lot of problems. Tata Steel says the bankers don't have enough control over Essar Steel for it to go ahead with the deal, said CNBC-TV18's Latha Venkatesh, quoting sources. For JSW Steel, buying the Essar arm is tricky as it would involve other multi-corporate deals.

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Lenders approach Tata Group, JSW to buy out Essar Steel

But the steel giants see a lot of problems. Tata Steel says the bankers don't have enough control over Essar Steel for it to go ahead with the deal, said CNBC-TV18's Latha Venkatesh, quoting sources. For JSW Steel, buying the Essar arm is tricky as it would involve other multi-corporate deals.

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Latha Venkatesh (more)

Executive Editor, CNBC-TV18 |

Essar Steel lenders have finally decided to take things into their own hands and have approached Tata Group and JSW Group to buy out Essar's debt-ridden steel arm.

However, both the steel giants see a lot of problems.

Tata Steel says the bankers don't have enough control over Essar Steel for it to go ahead with the deal, said CNBC-TV18's Latha Venkatesh, quoting sources.

For JSW Steel , buying the Essar arm is tricky as it would involve other multi-corporate deals. The Essar arm has linkages with Essar Ports through which its products are transported. Its slurry pipeline and oxygen plants have been sold and leased back. In addition, it has a power purchase agreement with Essar Power.

However, a deal looks imminent.

Watch video for more details.

Tata Steel stock price

On May 27, 2016, Tata Steel closed at Rs 329.00, up Rs 4.00, or 1.23 percent. The 52-week high of the share was Rs 364.15 and the 52-week low was Rs 200.00.


The company's trailing 12-month (TTM) EPS was at Rs 50.46 per share as per the quarter ended March 2016. The stock's price-to-earnings (P/E) ratio was 6.52. The latest book value of the company is Rs 736.86 per share. At current value, the price-to-book value of the company is 0.45.

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Lenders approach Tata Group, JSW to buy out Essar Steel

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