ArcelorMittal Nippon Steel India has concluded a transaction to acquire two port assets and a power plant from the Essar Group for about ₹16,500 crore having received requisite corporate and regulatory approvals.
This transaction, fully funded by AMNS India, follows an August agreement with Essar to acquire several power and infrastructure assets to strengthen the integration of manufacturing and logistics chain.
AMNS is still awaiting approval for taking over 515 MW gas-based power plant at Hazira, 16 MTPA all-weather, deep draft terminal at Visakhapatnam, and the 100 KM Gandhar-Hazira transmission line.
Acquired assets by AMNS India include 25 MTPA jetty at the all-weather, deep draft bulk port terminal at Hazira, Gujarat, 12 MTPA deep-water jetty at Paradip, Odisha, along with a conveyor that handles 100 per cent of pellet shipments from AMNS India’s Paradip pellet plant, and 270 MW multi-fuel power plant at Hazira.
Dilip Oommen, CEO, AMNS India, said owning these strategically located assets also supports ₹60,000 crore planned investment in capacity expansion at Hazira and realise additional synergies from rising throughput at the port assets in both Gujarat and Odisha.
Prashant Ruia, Director, Essar Capital said the company has concluded its asset monetisation programme and completed the debt repayment of $25 billion (₹200,000 crore), effectively making the group debt-free from Indian banks and financial institutions.
Essar continues to have a significant presence and substantial operating assets in all its core verticals – energy, metals and mining, infrastructure and logistics, and technology and retail.
The privately held group currently has revenue of $15 billion (₹1.2 lakh core) and assets under management of $8 billion (₹64,000 crore) within and outside India.
Rewant Ruia, Director, Essar Ports Terminals, said the company has monetised assets that were built over the last 30 years and now reinvesting in existing operations and in building new assets, both in India and overseas, with more efficient, latest, and carbon neutral new-age technologies, which will be sustainable. The assets that Essar has monetized over the last five years have yielded a multifold return on investments, he said.