JSW Steel Coated Products received court approval from the National Company Law Tribunal (NCLT) to acquire Asian Colour Coated Ispat (ACCI) following undisclosed adjustments to its takeover proposal.
The approval concludes an acquisition that dates back over a year when JSW submitted its plan to the bankruptcy court to purchase ACCI , which operated a 1mn mt steel plant. The initial offer included RS1,525 ($208mn) to financial lenders and payment of RS25 to operational creditors, translating to a 75pc outstanding debt payment to financial creditors. ACCI serves the domestic and exports markets to Asia, Europe, and the Americas.
Parent company JSW Steel didn’t specify the NCLT’s recommended modificationsACCI, which becomes the third distressed asset purchased by JSW in the past few years from India’s first defaulters’ list, including Monnet Ispat and Energy and Vardham Industries. JSW Steel is also seeking to acquire Bhushan Power and Steel for RS19,700, but the bid is presently in litigation.
ACCI is part of the second defaulters’ list that includes 28 entities. The company with factories in Delhi and Mumbai initially filed for bankruptcy in July 2018.