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VTB-Led Group Open to Buying Out Ruia in $6 Billion Essar Race

  • Numetal to pay large part of Essar Steel bid in cash: Chemali
  • Revival plan includes completing unfinished Essar Steel units
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A consortium led by VTB Group, Russia’s second-largest bank, said it’s willing to buy out a local partner to ensure its offer for an indebted Indian steel mill meets government rules, setting up a contest with billionaire Lakshmi Mittal.

Other investors in the group are willing to buy out Rewant Ruia’s stake in investment vehicle Numetal Ltd., Antoine Chemali, senior adviser for Mauritius-based Numetal, said in an interview in Mumbai on Thursday. That’s likely required because Ruia’s father is the founder of Essar Steel India Ltd. and under India’s bankruptcy rules, owners of distressed assets can’t bid to acquire those assets in the insolvency process. Ruia doesn’t have a board seat in Numetal, Chemali said.