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Vedanta bids for Electrosteel Steels; KKR-backed Radiant eyes Max Healthcare

09 January, 2018

Mining billionaire Anil Agarwal’s Vedanta Group is leading the race to buy debt-ridden Electrosteel Steels Ltd, The Economic Times reported citing two people aware of the development.

According to the report, the Vedanta Group placed a Rs 4,500 crore bid, which is higher than the diversified Tata Group’s offer. Abhishek Dalmia’s The Renaissance Group and an Edelweiss-backed overseas fund are also in the fray, but details of their separate bids are not yet known.

Electrosteel Steels is currently in the midst of insolvency resolution proceedings initiated by the National Company Law Tribunal (NCLT).

It was among the 12 large loan defaulters identified by the Reserve Bank of India (RBI) in its first list for debt resolution under the Insolvency and Bankruptcy Code (IBC).

According to the report, Elecrosteel’s committee of creditors will meet on Wednesday to deliberate on the next step.

The company’s annual report shows a total secured outstanding debt of Rs 12,377 crore as of March 31, 2017.

In a separate development, KKR-backed hospital management firm Radiant Life Care Pvt. Ltd is in early talks to buy South Africa-headquartered Life Healthcare Group Holdings’ 49.7% stake in homegrown hospital network Max Healthcare Ltd, The Economic Times reported citing persons aware of the matter.

The report also suggests that US-headquartered investment firm TPG Capital is in talks to buy stake in Max Healthcare.

Life Healthcare could seek a valuation of $450-500 million for its stake, the report cited one source as saying.

Last month, VCCircle first reported that Life Healthcare was looking to sell its stake in Max Healthcare. VCCircle also reported that Life Healthcare had emerged as a new potential strategic investor in Fortis Healthcare, the second-largest hospital firm by revenues and market value.
Launched in 2000, Max Healthcare is an equal joint-venture between Max India Ltd and Life Healthcare Group Holdings Ltd. It provides healthcare services focussed on tertiary and quaternary care.

Max Healthcare’s gross revenues stood at Rs 2,567 crore and profit before tax was Rs 24 crore for the financial year 2016-2017.

Last year, private equity giant KKR had acquired a 49% stake in Radiant Life Care Pvt. Ltd – led by investor-cum-entrepreneur Abhay Soi – for $200 million (Rs 1,288 crore).

“Radiant has a unique opportunity to acquire assets during a time of industry consolidation,” Sanjay Nayar, chief executive officer of KKR India, had said at that juncture.

In another report, JSW Infrastructure is set to join hands with Srei Infrastructure Finance Ltd to acquire the debt-ridden Sterling Port Ltd, Mint stated citing two people aware of the development.

The consortium formed by the above-mentioned infrastructure firms has reached an agreement with lenders of Sterling Port over the Rs 4,060 crore Dahej-based greenfield port project which is currently under development, the report added.

Promoted by Vadodara-based Sandesara group, Sterling Port’s debt is around Rs 300 crore and it owes Rs 80 crore in dues to the Gujarat Maritime Board.

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Vedanta bids for Electrosteel Steels; KKR-backed Radiant eyes Max Healthcare

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