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JSW Steel to raise funds for Bhushan Power acquisition; share price gains 2%

On September 5 this year, the National Company Law Tribunal had approved the Rs 19,700-crore acquisition.

December 24, 2019 / 02:33 PM IST
 
 
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Shares of JSW Steel gained 1.6 percent intraday on December 24 after a media report indicated that the company is raising funds for acquisition of Bhushan Power.

"JSW Steel, which is in the process of acquiring Bhushan Power and Steel, is raising Rs 3,000 crore in the form of bridge loans to make good the shortfall in the Rs 19,700-crore deal," The Economic Times said quoting people who have direct knowledge of the matter.

Credit Suisse, Deutsche and Standard Chartered are the three lenders likely extending the money that JSW Steel would repay in three years, the report added.

"We are in the advanced stages of negotiations with both the company and the lenders examining the final terms and conditions,” the report said quoting a Hong Kong-based senior executive, whose bank is one of the lenders.

On October 14, the National Company Law Appellate Tribunal had stayed JSW Steel from paying for the acquisition of Bhushan Power & Steel, which is undergoing insolvency proceedings.

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This basically delayed the process, and added a few more months before JSW Steel can take the keys of Bhushan Power & Steel.

On September 5 this year, the National Company Law Tribunal had approved the Rs 19,700-crore acquisition.

The stock was quoting at Rs 266.90, up Rs 3.20, or 1.21 percent at the time of publishing this copy.
Moneycontrol News
first published: Dec 24, 2019 02:33 pm

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