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TATASTLBSL - Tata Steel BSL News Story

₹21.05 -0.7  -3.2%

Last Trade - 10:59am

Sector
Basic Materials
Size
Small Cap
Market Cap £252.9m
Enterprise Value £1.93bn
Revenue £1.76bn
Position in Universe 469th / 3010

UPDATE 1-Tata Steel offers $5.4 bln to take over bankrupt Bhushan Steel -source

Fri 23rd March, 2018 1:07pm
* Plans 90 bln rupee investment in Bhushan Steel -source
    * Bhushan Steel among 12 big loan defaulters in bankruptcy
court  

 (Adds deal value from source, other details)
    By Devidutta Tripathy
    MUMBAI, March 23 (Reuters) - Tata Steel  TISC.NS  has
offered to pay a little more than 350 billion rupees ($5.4
billion) to lenders of Bhushan Steel & Power  BSSL.NS  to take
over the bankrupt steelmaker, a source with direct knowledge of
the deal said.
    Bhushan Steel's panel of creditors approved the deal on
Thursday, pending other regulatory clearances, the company said
in a stock exchange filing on Friday without disclosing
financial details.  urn:newsml:reuters.com:*:nL3N1R5262
    Tata Steel plans to inject more than 90 billion rupees into
Bhushan Steel to modernise and ramp up its facilities, the
source said, declining to be named because the details had not
been made public.
    A spokesman for the company declined to comment on the deal
value and planned investment in Bhushan Steel.
    Bhushan Steel is 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.
    The company, which was facing $8.6 billion of claims from
banks and other creditors, had received bids from Tata Steel and
top Indian steelmaker JSW Steel  JSTL.NS  in an auction
conducted by a court-appointed administrator.  urn:newsml:reuters.com:*:nL4N1PV2LE
    Taking over Bhushan Steel will help Tata Steel to increase
capacity in India and gives the company an edge in the
fast-growing automotive steel market. 
    With annual steelmaking capacity of 5.6 million tonnes,
Bhushan Steel is one of the biggest producers of cold-rolled
steel products used to make cars and consumer goods such as
refrigerators and washing machines.
    Shares in Tata Steel closed 2.5 percent down on Friday in a
Mumbai market  .NSEI  that fell by 1.2 percent. 
($1 = 65.0050 Indian rupees)

 (Reporting by Devidutta Tripathy
Additional reporting by Promit Mukherjee and Rajendra Jadhav in
Mumbai, and Tanvi Mehta in Bengaluru
Editing by David Goodman)
 ((devidutta.tripathy@thomsonreuters.com; +91 84518 40430;
Reuters Messaging:
devidutta.tripathy.thomsonreuters.com@reuters.net))
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