|
|
| |
|
|
ArcelorMittal gets approval from exchanges for exit from Uttam Galva-The 19th Guangzhou Die-casting, Foundry & Industry Furnace Exhibition
3/27/2018 壓鑄展-鑄造展- Die-casting expo-foundry expo |
--------------------------------------------------------------------------------------------------------------- |
|
Money Control reported that ArcelorMittal has got approval from exchanges to change its ''promoter'' status in Uttam Galva Steels, giving it a huge boost ahead of the second round bidding for Essar Steel. Sources confirmed that exchanges have declassified ArcelorMittal as promoter of Uttam Galva. A source told Moneycontrol that “ArcelorMittal moved to exchanges and SEBI on March 9 to be declassified as a promoter in Uttam Galva. The NSE has approved the change on March 22 while BSE approved it on Friday.”
Mr Sumit Agrawal of Suvan Law Advisors who representing ArcelorMittal said that "Reclassification of ArcelorMittal BV as a promoter of Uttam Galva was a matter of procedure and Stock Exchanges do look if there was any shareholding or special rights before providing approval."
ArcelorMittal had bought 29% stake in Uttam Galva in 2010, venturing into the Indian market for the first time. But the investment came under scrutiny when the world’s largest steelmaker expressed interest in buying Essar Steel. The Essar Group company was referred to the National Company Law Tribunal after accumulating debts of nearly INR 50,000 crore. An amendment in the Insolvency and Bankruptcy Code prevented promoters of defaulting companies from bidding for a stressed asset. Despite ArcelorMittal’s contention that it didn’t have a management role in the running of Uttam Galva which had defaulted on loan repayments the company was under pressure.
Consequently on January 31, Uttam Galva told BSE it was buying back the 29% stake from ArcelorMittal. But the stake sale was not enough.
ArcelorMittal and Numetal submitted bids for Essar Steel on February 12. More than a month later, and after several rounds of deliberations, both the bids were found to be ineligible in a meeting between the resolution professional and Essar Steel''s Committee of Creditors.
The resolution professional oversees the auction, and CoC consists of the company''s lenders.
Clearly, despite having sold the stake in Uttam Galva, it mattered that ArcelorMittal was a ''promoter'' when the company owned by the Miglani family defaulted.
壓鑄展-鑄造展-2018第十九屆廣州國際壓鑄、鑄造及工業爐展覽會-中國最受關注的壓鑄鑄造展會-巨浪展覽
-The 19th Guangzhou Die-casting, Foundry
& Industry Furnace Exhibition
-Die-casting exhibition, Die-casting
expo,2018 Die-casting exhibition, 2018 Die-casting expo, China Die-casting
exhibition, China Die-casting expo, Foundry exhibition, Foundry expo, 2018
Foundry exhibition, 2018 Foundry expo, Industry Furnace exhibition, Industry
Furnace expo, 2018 Industry Furnace exhibition, 2018 Industry Furnace expo,
China Industry Furnace exhibition, China Industry Furnace expo
|
|
|
|
|
