JSW Ispat To Sell Raipur Plant, Related Assets To Subsidiary For Rs 450 Crore

JSW Ispat Special Products Ltd. will sell its Raipur, Chhattisgarh plant and certain assets to a fully owned subsidiary and instead focus on specialty steel used in automobiles to smartphones.

In the two-step deal, the joint venture between JSW Steel Ltd. and private equity firm AION proposes to first fully acquire Mivaan Steels Ltd. for Rs 80,000 crore, according to an exchange filing.

The firm was set up in November 2021 to mine and manufacture metals and steel but is yet to commence operations. The transaction will be closed within 30 days and requires no regulatory approvals, the filing said.

JSW Ispat (erstwhile Monnet Ispat & Energy Ltd.) will then transfer the Raipur units and associated assets via slump sale as a going concern to Mivaan Steels for Rs 450 crore.

The sale price for the related-party transaction was determined based on an independent valuation report from PWC Business Consulting Services LLPs, the filing said. The deal, being done at an arm’s length, is subject to shareholder, creditor and regulatory approvals.

The transaction covers the manufacturing units at Raipur and mining facilities at Kanker and associated coal washery operations at Patherdih, besides some other assets and properties. The Raipur site comprises a sponge iron plant with a capacity of 0.3 million tonnes per annum, and a ferro alloy plant and steel manufacturing plant with a capacity of 0.25 MTPA.

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