GIHL's bid for NSC is approved

GIHL’s bid for NSC is approved

According to recent market news, bid of Global Infrastructure Holdings Ltd (GIHL) for National Steel Corporation (NSC) is approved by more than 60% of the creditor banks, which will result in the takeover of NSC by GIHL. As previously reported by SteelOrbis, NSC was closed five years ago due to huge debts and an auction was commenced for the takeover of the company. Several companies submitted bids for NSC, however GIHL, with a bid including PhP (Philippine Peso) 12.25 billion ($220 million) to be paid in eight years and a cash payment of Peso 1 billion ($18 million), came out as the winner of the auction. However for the completion of takeover, GIHL's offer had to be approved by Philippines creditor banks. GIHL's offer is recently approved by the creditor banks, however LNM, which submitted the second highest offer for NSC, continues to pursue its bid for NSC. An official from LNM, stating that the company is in preparation of offering 10% more than PhP 13.25 billion ($238 million), bid of GIHL, to be paid in less than eight years, expressed his frustration about approval of GIHL's offer, although the offer submission deadline for GIHL has already expired, when it submitted its improved offer. Moreover, it is stated that LNM will pursue its offer till NSC is officially sold to GIHL.