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Tatas eye Bhushan Power; Dalmia-Bain Piramal leads Binani Cement buyout race

19 February, 2018

Tata Steel Ltd emerged as the lead contender for the acquisition of Bhushan Power and Steel Ltd, with the debt-laden company’s committee of creditors considering the Rs 24,500 crore offer by the Tatas, a financial daily reported.

The Economic Times report also said that JSW Steel had made an offer of Rs 13,000 crore for the stressed assets of the company.

Bhushan Power and Steel is undergoing a corporate insolvency resolution process initiated by the National Company Law Tribunal. It is one of the 12 large loan defaulters identified by the Reserve Bank of India under the Insolvency and Bankruptcy Code.

The bid made by Tata Steel includes a payment of Rs 17,000 crore to lenders and a cash infusion of Rs 7,000 crore to meet the working capital requirements of the company, besides a pay out to operational creditors and employees, the report added.

Sanjay Singhal-promoted Bhushan Power and Steel has a debt of about Rs 48,000 crore

Binani Cement bid
The joint-bid by Dalmia Bharat Cement and Bain Piramal Resurgence Fund for debt-laden Binani Cement is higher than that of UltraTech Cement, ET reported.

According to the report, Dalmia Bharat-Bain Piramal’s Rs 6,300-crore offer for Binani Cement beats UltraTech’s Rs 6,100-crore bid.

Bain Piramal Resurgence Fund is a joint venture between Piramal Enterprises and Bain Capital Credit, the credit arm of private equity firm Bain Capital.

Binani Cement is undergoing a corporate insolvency resolution process initiated by the National Company Law Tribunal. The company owes Rs 3,884 crore
to a consortium of lenders, which includes State Bank of India, Canara Bank and Bank of Baroda.

Citing unnamed people, the report added that the lenders feel the Competition Commission of India may have concerns on UltaTech Cement acquiring Binani, considering its market share in Gujarat

The other bidders include a consortium led by Rakesh Jhunjhunwala and Radhakishan Damani, Heidelberg, JSW Cement and a joint-bid by True North-Ramco.

A subsidiary of Binani Industries Ltd, Binani Cement has an annual manufacturing capacity of 11.25 million tonnes, globally, with an integrated plant in India and China, and grinding units in Dubai, according to its website.

IFMR Capital
Debt financier IFMR Capital has unveiled a new brand identity, The Times of India reported. The company will now be known as Northern Arc Capital, the report said, citing IFMR Capital CEO Kshama Fernandes.

IFMR Capital subsidiary IFMR Investment Managers, an alternative investment fund vehicle, will be known as Northern Arc Investment Managers, the report added.

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Tatas eye Bhushan Power; Dalmia-Bain Piramal leads Binani Cement buyout race

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