LNM eager to recommence NSC, hikes its offer
According to market reports, LNM Group expressed its intention to offer Pesos 2 billion ($36 million), twice as much as Global Infrastructure Holdings Ltd.'s (GIHL) offer, to be paid in advance for the recommencing and reconditioning of the facilities of National Steel Corp of
Philippines which went bankrupt and was closed in November 1999.
One of the major steel producer in the world, LNM stated that in case negotiations between GIHL and NSC fail they will submit their offer and pay shortly after the finalization of a deal with the Philippine steelmaker. It is also reported that LNM plans to make
investments of total $70 million; $20 million of which to be used for purchasing of new capital equipment and balance to meet raw material and working capital requirements. Likewise in the previous acquisitions, LNM said that they can make NSC produce in excess of its original annual capacity of 11.5 million mts.
The London based major steel producer emphasizes that, GIHL which is a unit of Indian Ispat, is pretty inexperienced in acquiring and conducting an operation outside
India. Additionally, LNM will hound NSC even if GIHL reaches to an agreement with creditor banks, for the reason that they see NSC as a key to expand in Asia.