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Market Cap £252.9m
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India's JSW Steel, Tata Steel among suitors for Bhushan Steel - sources

Mon 5th February, 2018 11:02am
* JSW Steel bids jointly with India Resurgence Fund - 
sources 
    * Group comprising some Bhushan Steel employees also bids 
    * Bhushan Steel faces highest claims among 12 big bankruptcy 
cases 
 
    By Devidutta Tripathy and Promit Mukherjee 
    MUMBAI, Feb 5 (Reuters) - Indian steelmakers JSW Steel 
 JSTL.NS  and Tata Steel  TISC.NS  have bid for Bhushan Steel & 
Power  BSSL.NS  which is being pursued by creditors in 
bankruptcy court, three people familiar with the bidding process 
said on Monday. 
    At 559.89 billion rupees ($8.75 billion), Bhushan Steel 
faces the highest claims among a dozen companies pushed to 
bankruptcy court last year amid a government drive to clear a 
mountain of bad loans choking credit at Indian banks. 
    India's largest steelmaker JSW Steel has jointly bid with 
India Resurgence Fund, a partnership between Piramal Enterprises 
and Bain Capital, the sources said. 
    In addition to this joint bid and Tata Steel's offer, a 
third group comprising some Bhushan Steel employees also placed 
a bid for the company, the sources added.  
    There were no details on the size of the bids except one 
source put the joint JSW Steel bid at as much as 280 billion 
rupees. 
    A spokesman for JSW Steel did not immediately respond to 
repeated requests for comment on whether it had placed a bid. 
Joint Managing Director Seshagiri Rao had previously said the 
company was interested in five steelmakers in bankruptcy 
proceedings, including Bhushan Steel.  urn:newsml:reuters.com:*:nL3N1NS39C 
    Vijaykumar V. Iyer, the bankruptcy court-appointed 
administrator for Bhushan Steel, did not respond to repeated 
requests for a comment. Court-appointed insolvency officials 
rarely discuss details of cases with the media. 
    A Tata Steel spokesman declined to comment when asked if the 
company had bid for Bhushan Steel, but said: "looking at 
strategic growth is an ongoing process". 
    Asked about the bid, India Resurgence Fund said it would not 
comment on "market speculation".    
    Bhushan Steel, with an annual steelmaking capacity of 5.6 
million tonnes, is one of the biggest producers of cold-rolled 
steel products used to make cars and consumer goods such as 
refrigerators and washing machines. 
    ArcelorMittal  MT.AS , the world's largest steelmaker which 
industry sources had previously said was interested in bidding 
for Bhushan Steel, did not submit a bid, the company said in a 
statement to Reuters, adding: "We remain interested at looking 
at future opportunities in India." 
    Indian media had earlier reported that JSW Steel and Tata 
Steel had bid for Bhushan Steel.  
    India, which did not have a formal bankruptcy process until 
mid-2016, has seen a surge in bankruptcy cases since last year, 
with over 500 companies currently facing bankruptcy court 
proceedings. 
    The surge in cases comes after the government changed the 
law giving greater powers to the central bank, which has so far 
ordered creditor banks to push nearly 40 companies with loan 
defaults of nearly 4 trillion rupees ($62.46 billion) into 
bankruptcy proceedings. 
 ($1 = 64.0200 Indian rupees) 
 
 (Reporting by Devidutta Tripathy and Promit Mukherjee; Editing 
by Miral Fahmy) 
 ((devidutta.tripathy@thomsonreuters.com; +91 84518 40430; 
Reuters Messaging: 
devidutta.tripathy.thomsonreuters.com@reuters.net)) 
 
Keywords: BHUSHAN STEEL BANKRUPTCY/BIDS
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