Three Indian steel companies are considering bidding for the Indian assets of debt-ridden Stemcor Holdings, a UK steel trader.
JSW Steel, Jindal Steel and Power and Essel Mining and Industries, part of the Aditya Birla Group (which also owns the US-based secondary aluminium company, Novelis, and Hindalco, the Indian aluminium producer) are the three companies concerned in the potential transaction.
Stemcor is hoping to sell its Indian assets to pay off a US$1.25 bn debts. The deal would involve an iron ore pellet plant and stakes in an iron ore mine in Odisha, India.
According to a report online by VC Circle, "the initial deal valuation of $1 billion for Stemcor’s assets, mentioned by investment bankers, is now being pared down owing to concerns over the likelihood of stern action against illegal mining in Odisha on the lines of Karnataka and Goa."
Source: VC Circle.