Vedanta Ltd on Friday said it is implementing the resolution plan for the acquisition of Ferro Alloys Corporation Ltd (FACOR) and the upfront amount will be paid to the financial creditors of FACOR.
In a regulatory filing the company said, the consideration for the acquisition is in the form of "upfront cash and non-convertible debentures which will mature in four equal instalments over a period of four years" whereby management control of FACOR will be taken by the company.
The acquisition will complement Vedanta's existing steel business, as the integration of ferro manufacturing capabilities has the potential to generate significant efficiencies, the company said and added that the approval from the National Company Law Tribunal has been received.
"The consideration payable for the acquisition of FACOR on debt and cash free basis under the approved resolution plan is Rs 10 crore as well as equivalent of cash balance in FACOR's subsidiary, FACOR Power Ltd (FPL) as upfront payment and zero coupon, secured and unlisted non-convertible debentures of aggregate face value of Rs 270 crore to the financial creditors payable equally over four years commencing March 2021," the filing added.
FACOR is a company in the business of producing Ferro Alloys and owns a Ferro Chrome plant with capacity of 72,000 TPA, two operational Chrome mines and 100 MW of Captive Power Plant through its subsidiary, FACOR Power Limited (FPL).