JSW Steel Limited has completed the acquisition of Asian Colour Coated Ispat Limited (ACCIL) through its wholly-owned subsidiary JSW Steel Coated Products Limited (JSWSCPL).
ACCIL is mainly engaged in the manufacturing and marketing of Galvanized and Colour Coated Coils & Sheets. The total consideration for the acquisition of Target is Rs1,550cr.
The company received the written order from National Company Law Tribunal at New Delhi (NCLT) on October 26, 2020, for approval of the Insolvency and Bankruptcy Code, 2016, as amended, the resolution plan submitted by JSW Steel Coated Products for ACCIL with certain modifications.
As part of the acquisition, JSWSCPL has infused Rs1,550cr into its wholly-owned subsidiary Hasaud Steel Limited (HSL) through a mix of equity/quasi-equity/debt instruments as per the Resolution Plan.
HSL has paid Rs1476.94cr to certain financial creditors of ACCIL, towards the assignment of their ACCIL loans, and has infused Rs73.06cr into ACCIL in the form of a loan, for onward payments to operational creditors, workmen/employees, and other financial creditors of ACCIL, in full discharge of JSWSCPL’s obligations under the Resolution Plan.
HSL has been issued equity shares of ACCIL by way of conversion of the above-mentioned loan of Rs73.06cr infused by it, following the Resolution Plan. Simultaneously, as provided in the Resolution Plan, the existing issued equity share capital of ACCIL comprising of 88,07,76,270 equity shares of face value Rs10 each held by the existing shareholders are cancelled and extinguished without any payment to the shareholders following the Resolution Plan.
Accordingly, immediately upon implementation of the Resolution Plan, HSL (a stepdown wholly-owned subsidiary of the Company) holds 100% of the equity interest in ACCIL.
At around 10.02 am, JSW Steel Ltd is trading at Rs312.25 per piece up by Rs3.3 or 1.07% from its previous closing of Rs308.95 per piece on the BSE.