Lenders to Essar Steel India Ltd., the biggest mill being sold under the nation’s insolvency process, are voting Tuesday to finalize a bid from ArcelorMittal, people with knowledge of the matter said.
Arcelor has offered to make an upfront payment of about 395 billion rupees ($5.4 billion) to the banks, the people said, asking not to be identified because the information is private. The Luxembourg-based suitor later plans to pay the lenders about 25 billion rupees from Essar Steel’s retained earnings, according to the people.
Arcelor, controlled by billionaire Lakshmi Mittal, was chosen last week as the preferred bidder for Essar Steel after going through multiple rounds of bidding for the asset, which would give the world’s biggest steelmaker a foothold in India’s growing market for the alloy. Following legal challenges to the bidding process, India’s Supreme Court this month cleared the way for lenders to decide on a winner. Read more
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