JSW Steel-Aion Investments consortium gets LoI for Monnet Ispat
JSW Steel-Aion Investments consortium has received a letter of intent (LoI) for Monnet Ispat and Energy following the creditors' almost unanimous vote to award the stressed steel company to the consortium, JSW Steel said in a notification to BSE
on Thursday.
It has accepted the terms of the LoI and the completion of the transaction is now subject to necessary regulatory approvals from NCLT and the Competition Commission of India (CCI).
The lenders to Monnet Ispat on Tuesday had given a favourable vote to the consortium by a 98.97%. JSW Steel had offered Rs 3,500 crore for Monnet, including Rs 2,500 crore to lenders and an equity investment of Rs 1,000 crore backed by a letter of comfort by ICICI Bank. The offer involved a haircut of almost 75% on a debt of more than Rs 10,000 crore.
It has accepted the terms of the LoI and the completion of the transaction is now subject to necessary regulatory approvals from NCLT and the Competition Commission of India (CCI).
The lenders to Monnet Ispat on Tuesday had given a favourable vote to the consortium by a 98.97%. JSW Steel had offered Rs 3,500 crore for Monnet, including Rs 2,500 crore to lenders and an equity investment of Rs 1,000 crore backed by a letter of comfort by ICICI Bank. The offer involved a haircut of almost 75% on a debt of more than Rs 10,000 crore.
Are you a Business Owner? Get Your Free Business Listing on Economic Times.
Register Now