Deals
Essar Lenders Vote to Approve $5.4 Billion Arcelor Bid
- Arcelor proposal to cost $6.8 billion with capital infusion
- Steel mill is being sold under India’s insolvency process
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Lenders to Essar Steel India Ltd., the biggest mill being sold under the nation’s insolvency process, are voting to finalize a bid from ArcelorMittal, people with knowledge of the matter said.
Arcelor has offered to make an upfront payment of about 395 billion rupees ($5.4 billion) to the banks, the people said, asking not to be identified because the information is private. The Luxembourg-based suitor later plans to pay the lenders about 25 billion rupees from Essar Steel’s retained earnings, according to the people. It has also proposed a capital injection of 80 billion rupees into the mill, they said, taking the bill for Arcelor to about 500 billion rupees.