Sesa Goa acquires Bellary Steel & Alloys for Rs220 crore
23 Mar 2011
Sesa Goa Limited on Tuesday announced the acquisition of the assets of the upcoming steel unit of Bellary Steel & Alloys Limited (BSAL) in an all-cash deal worth Rs220 crore.
Sesa Goa acquired the assets of the debt-ridden Bellari Steels from the official liquidator and the creditors represented by IFCI Ltd.
The secured creditors to BSAL, represented by IFCI Ltd, had taken over possession of the properties of BSAL in association with the official liquidator. IFCI Ltd then conducted a sale process for the assets of BSAL under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act, 2002).
BSAL was in the process of putting up a 0.5 mtpa steel plant at Bellary. The properties of the under-construction plant acquired are freehold land of ~700 acres, building and structures, plant and machinery and other assets of the steel plant.
The assets have been transferred on an "as is where is" basis to SGL as of 22 March 2011.
The company is currently conducting a detailed assessment in order to commission the steel plant at the earliest.
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