JSW Ispat Special Products Limited, a joint venture between JSW Steel and private equity firm AION, said on February 16 its board has approved a proposal to sell its Raipur steel plant and certain other assets to a wholly-owned subsidiary via a slump sale of Rs 450 crore.
The sale process first entails the acquisition of Mivaan Steels Limited to make it a wholly-owned subsidiary of the company, after which the Raipur plant will be transferred to Mivaan Steels, JSW Ispat Special Products, formerly known as Monnet Ispat and Energy Limited, said in a statement.
The manufacturing facilities at Raipur comprises a sponge iron manufacturing plant with a capacity of 0.3 MTPA (million tonnes per annum), a ferro alloy plant and a steel manufacturing plant with a capacity of 0.25 MTPA.
The sale is subject to approval by the National Company Law Tribunal (NCLT) in Chhattisgarh, according to the statement.
With this transaction "...the Company will be able to focus on special steel products and explore and develop markets for its special steel products. Accordingly, with a view to inter-alia achieve dedicated management focus on their respective grades of products and customer segments, facilitate strategic opportunities (including fund raising prospects), maximize value, increase efficiencies and enhance administrative control, the Company proposes to transfer the Specified Undertaking to the Transferee Company upon it becoming a wholly owned subsidiary of the Company," the statement added.
"This is expected to create and enhance stakeholders' value by unlocking the intrinsic value and growth potential for the respective businesses of the Transferor Company and Transferee Company."
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