Tatas set to buy Bhushan Steel for Rs 36,000 crore

NEW DELHI:As N Chandrasekaran, the first non-Parsi Chairman of the Tata Group in its 150-year history, completes his first year in office on February 21, the stage is set for the largest acquisition that the Tata Group has ever made in the form of a Rs 36,000-crore bid by Tata Steel for Bhushan Steel.

Sanjeev Sharma

Tribune News Service

New Delhi, February 19

As N Chandrasekaran, the first non-Parsi Chairman of the Tata Group in its 150-year history, completes his first year in office on February 21, the stage is set for the largest acquisition that the Tata Group has ever made in the form of a Rs 36,000-crore bid by Tata Steel for Bhushan Steel.

Although it is yet to be officially announced, Chandrasekaran’s biggest gambit as he proceeds to turnaround the Tata Group would be the now almost certain acquisition of the crippled Bhushan Steel by Tata Steel for Rs 36,000 crore, which the company has reportedly bid for and thus emerging as the highest bidder for the Delhi-based company that’s under the National Company Law Tribunal (NCLT) now as part of the Insolvency and Bankruptcy Code.

Apart from Tata Steel, JSW of Sajjan Jindal and employees of Bhushan Steel were the other bidders. As part of the resolution process, the Resolution Professional (RP) received resolution plans from Tata Steel, JSW Living Pvt Ltd and employees of Bhushan Steel. A broad summary of these resolution plans was presented by the RP to the Committee of Creditors (CoC) in their meeting held on February 16.

The RP and its advisers will now review these plans so as to ensure that these plans are in conformity with the provisions of Insolvency & Bankruptcy Code, 2016 and additional requirements as stipulated by the CoC in the process document.

Once the compliant resolution plans are identified, another meeting of the CoC will be convened to present the compliant plans for the consideration of the CoC.

Tata Group sources said Chandrasekaran’s first year in office has been marked by finding solutions to legacy issues like the Tata Teleservices-NTT Docomo dispute, revamping Tata Motor's domestic operations and also divesting Tata Steel's cash burning European operations.

Chandra took over the reins last February, when the group was facing a litany of challenges for the manner in which the Board sacked Cyrus Mistry as the chairman. The case is sub-judice now with NCLT and the Delhi and Bombay high courts hearing a slew of petitions.

Highest bidder for debt-laden company

Tata Steel has emerged as the highest bidder for the debt-ridden Bhushan Steel which is under the National Company Law Tribunal now as part of the Insolvency and Bankruptcy Code
Bhushan Steel, one of the 12 non-performing accounts referred by the RBI for National Company Law Tribunal proceedings, owes Rs 44,478 crore to its lenders
According to the Bhushan Steel’s website, it is the third largest secondary steel producer in the country with annual capacity of 5.6 million tonne