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Ruias, VTB Capital tie up for Essar Steel bid; IDFC-Shriram merger in limbo

27 October, 2017

Essar Steel promoters, the Ruia Group, have tied up with Russian investment bank VTB Capital to retain control of the debt-laden, a financial daily reported.

Citing unnamed individuals, Business Standard reported that the Essar Steel promoters have submitted their bid along with a letter of comfort from VTB Capital. However, the finer details of the partnership are still not out yet, and will emerge as and when the non-binding bid is submitted.

An earlier report had said that Arcelor Mittal, Tata Steel and Nippon Steel had also put in their bids to pick up the stressed assets of Essar Steel.

Essar Steel is among 12 large NPA accounts identified by the RBI for loan resolution under the insolvency and bankruptcy code. It owes Rs 45,000 crore to a consortium led by State Bank of India.

VTB Capital had advised Essar Energy in the $12.9 billion Essar Oil sale to Rosneft-led consortium.

IDFC-Shriram merger
The proposed merger between IDFC Ltd and Shriram Group entities is in danger of being called off due to differences over valuation, Mint reported, citing three people aware of the development.

According to the current structure, IDFC shareholders will own 38% stake in the merged entity. IDFC Ltd’s shareholders have demanded a better valuation for the company, says the report.

As on 30 September, the government had held a 16.38% stake in IDFC Ltd and Malaysian sovereign wealth fund Khazanah held 9.47% stake.

“Some private institutional shareholders are lobbying the government to push for a higher valuation for the financial services firm,” the report quoted a source as saying.

Earlier this month, IDFC and Shriram Group had extended the merger deadline till 8 November.

Hero FinCorp
Non-banking financial company Hero FinCorp Ltd is looking to foray into non-life insurance business, Mint said.

The company is also looking to buy a stake in a general insurance company, it added. Hero FinCorp was in talks to acquire Future Generali, but the deal had hit a roadblock due to mismatch in valuation.

Future Generali is a joint-venture between Kishore Biyani-led Future Group and Italy-based insurance major Assicurazioni Generali.

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Ruias, VTB Capital tie up for Essar Steel bid; IDFC-Shriram merger in limbo

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