Indian steel producer Tata Steel Limited (TSL) has received a Letter of Award (LoA) for acquiring state-run steel producer Neelachal Ispat Nigam Limited (NINL) through its subsidiary Tata Steel Long Products Limited (TSLPL) and the formalities of acquisition will be completed within the next two months, TSL said in a regulatory filing on Friday, February 11.
On February 2, the government announced TSL as the winning bidder to acquire NINL for $1.61 billion.
Meanwhile, the board of directors of TSLPL has approved raising an estimated $1.73 billion through issuing convertible redeemable preference shares on preferential basis to parent company TSL to fund the acquisition of a 93.71 percent equity stake in NINL from the government.
The company has already announced that NINL’s 1.1 million mt steel mill in the eastern state of Odisha will be ramped up to 5 million mt per year in the first phase and 10 million mt per year subsequently.
