VTB-backed Numetal on Thursday disclosed in the National Company Law Appellate Tribunal (NCLAT) that its bid value in the second round of bidding for Essar Steel is Rs 370 billion, short of double its first offer of Rs 190 billion, and about Rs 65 billion higher than ArcelorMittal’s bid in the first round.
If the bid values of the two companies are compared, Numetal’s bid value in the second round at Rs 430 billion (including capital infusion) is higher than ArcelorMittal’s first offer by Rs 45 billion. ArcelorMittal’s bid in the second round, however, is not known.
Counsel representing Numetal, Mukul Rohatgi, said in the NCLAT on Thursday that Numetal had offered Rs 370 billion in the second round of bidding.
ArcelorMittal’s bid value in the first round, which is under consideration right now, included a payment of Rs 305 billion to secured lenders and a capital infusion of Rs 80 billion. Sources close to ArcelorMittal said if what the firm offered for Uttam Galva Steels and KSS Petron was added, the amount would be Rs 455 billion — higher than what Numetal has offered.
Numetal, however, is also offering Rs 20 billion for Odisha Slurry Pipeline Infrastructure, which is facing insolvency proceedings and owns a 253km pipeline, key for Essar’s raw material supply.
Essar’s admitted financial claims are to the tune of Rs 490 billion.
ArcelorMittal’s counsel, Abhisek Manu Singhvi, told the NCLAT that the second round of bids had become “infructuous” after the repayment of dues on account of Uttam Galva Steels and KSS Petron. ArcelorMittal has parked Rs 70 billion in an escrow account of State Bank of India towards the repayment.