LNM waiting for a chance to resubmit its offer to NSC
According to market reports,
Philippines National Steel Corp.'s (NSC) creditors and shareholders decided to give 90 days to Global Infrastructure Holdings Ltd. (GIHL) of
India for exclusivity negotiations. Whereupon, London based LNM Group declared that despite this decision they are still interested in resubmitting their offer.
The Group underscored its profit-sharing arrangement included in the initial offer worth
Philippines Pesos 7 billion ($126 million), Pesos 3 billion ($54 million) of which will be paid in advance. Balance will be invested in modernization of the facilities.
GIHL, a unit of Indian Ispat Group, offered Pesos 13 billion ($235 million) to be paid within a 10 year period to acquire bankrupt NSC. Besides, it paid Pesos 250 million ($4.5 million) to be used for necessary arrangements. The amount GIHL will pay in advance is not disclosed yet.
LNM which is experienced in turning acquired steel companies into profitable operations, stressed that Ispat Group has never operated outside
India and the only reason why GIHL's offer was higher, was the longer payment period.