Nearly 90 percent of Bhushan Power and Steel’s (BPSL) creditors recently voted in favor of accepting the JSW Steel bid of an upfront payment of Rs 19,300 crore (US$2.63 billion). The bid increased from its initial Rs 11,500 crore (US$1.57 billion) to one higher than Tata Steel’s Rs 17,000 crore (US$2.31 billion) and Liberty House’s late bid of Rs 18,500 crore (US$2.52 billion).
BPSL has 3.1 million mt of annual production capacity and is presently operating at 90 percent capacity utilization.
While Tata Steel is likely to continue contesting the bidding process on the basis that it was the highest bidder of the first official deadline held on February 8, the National Company Law Appellate Tribunal (NCLAT) is likely to side with creditors’ voting preference on the basis of a higher debt recovery through JSW Steel. In August, the NCLAT allowed revised offers despite the ongoing case and objection from Tata Steel.
Tata Steel previously acquired Bhushan Steel. JSW Steel is presently also seeking to acquire Essar Steel via the NCLAT.