Essar To Sell Infra Assets To Arcelor Mittal Nippon Steel For Rs 19,000 Crore

2022-08-27 06:15:13

(MENAFN- Trend News Agency)

In one of the largest post-pandemic M&A deals in India, Essar on Friday announced signing definitive agreements with Arcelor Mittal Nippon Steel (AM/NS) for certain ports and power infrastructure assets which are primarily captive to Hazira steel plant operations, Trend reports citing The Tribune India .

The deal also envisages a 50-50 joint venture partnership, for building a 4 MTPA LNG terminal at Hazira, Gujarat, between Essar and ArcelorMittal.

Rewant Ruia, Director, Essar Ports & Terminals Limited, said: “With this deal, which yields a multifold return on our investments, Essar Ports & Terminals has unlocked value for all its stakeholders and will continue to focus on building new and modern core infrastructure assets in India and overseas.” Prashant Ruia, Director, Essar Capital, said:“Essar is now repositioned for growth and resurgence. After consolidating our businesses over the last 4 years, we have now entered the next growth phase focused on helping build a sustainable energy future that will impact lives and livelihoods for a greener world.”

With this deal, Essar will conclude its planned asset monetisation programme and complete the debt repayment plan of $25 billion (Rs 2,00,000 crore) with the Indian banking sector being almost fully repaid. Essar's aggregate revenue will stand at $15 billion (Rs 1.2 lakh crore) and an AUM (asset under management) of $8 billion (Rs 64,000 crore) comprising various assets spread across India and overseas.

These assets under energy sector include a 10 MTPA refinery in the UK, 15 TCF reserves (including some producing fields) of Unconventional Hydrocarbons in India & Vietnam and a 1,200 MW Power Plant in India; Infra sector assets include a storage terminal in UK of 3 million m3 capacity and a 20 MTPA Port in India; Metals & Mining sector assets include a major iron ore mine and pellet project in the US; Technology & Services sector assets include Global EPC business and IT solutions provider with centres across 30 plus countries.

MENAFN27082022000187011040ID1104767803

Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.