Jindal Brothers Submit Separate Bids for Stemcor Indian AssetsAbhishek Shanker and Rajesh Kumar Singh
JSW Steel Ltd. and Jindal Steel & Power Ltd., holdings of the billionaire Jindal family, have submitted separate bids for Indian assets of U.K.-based Stemcor Holdings Ltd., Jindal executives said.
JSW, owned by Sajjan Jindal, is seeking to buy Stemcor assets and has submitted a second-round bid, Seshagiri Rao, joint managing director of the nation’s third-largest steelmaker, said today in Mumbai. Jindal Steel, owned by brother Naveen Jindal, also has placed a bid, Managing Director Ravi Uppal said today in New Delhi.
London-based Stemcor, which posted a loss of 20 million pounds ($33.1 million) in 2012, failed to repay an $850 million international credit line in May 2013 because of a decline in sales and had until the end of 2013 to reorganize its $1.25 billion debt. The company has obtained an extra two months, until the end of February, to negotiate a deal with its lenders, Charles Armitstead, a company spokesman employed by Pendomer Communications LLP, said Jan. 6.
A delay in selling the Indian businesses may jeopardize Stemcor’s restructuring plans with lenders including ABN Amro Bank NV, HSBC Holdings Plc and Societe Generale SA.
Closely held Stemcor owns Indian iron and manganese ore mines and a pellet plant through majority holdings in Aryan Mining & Trading Corp. and Brahmani River Pellets Ltd., according to a company presentation. Stemcor also owns a slurry pipeline connecting the mine to the factory.
Stemcor has a 73 percent stake in Aryan Mining, which owns iron ore and manganese ore mines. Aryan Mining owns 100 percent stake of Brahmani River.