India’s private sector steelmaker, JSW Ispat Special Steel Limited, formerly Monnet Ispat Limited, has transferred its assets to Mivan Steel Limited, a wholly-owned subsidiary, a company statement said on Thursday, February 17.
The assets of JSW Ispat Special Steel to be transferred to the new subsidiary include the steel mill, all mining facilities and the coal washery located in the central state of Chhattisgarh to Mivan Steel Limited, “to unlock the value of the assets,” the company statement said.
The transfer of assets will be at a value of INR 4.5 billion ($60 million) on the “slump sale basis” or a lump sum consideration without value being assigned to each of the assets and the entire transaction will be completed within the next 30 days.
JSW Ispat Special Steel Limited is a joint venture of JSW Steel Limited and private equity capital fund Aion, which acquired the stressed assets of Monnet Ispat Limited through the bankruptcy resolution process in 2018.
The manufacturing facility at Chhattisgarh includes a sponge iron manufacturing mill of 300,000 mt per year capacity, a ferro alloy plant and a steel mill of 250,000 mt per year capacity.