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ArcelorMittal Completes Acquisition of Odisha Slurry Pipeline Infrastructure

Steel News - Published on Mon, 03 Aug 2020

Image Source: ArcelorMittal Odisha Slurry Pipeline
The Telegraph reported that ArcelorMittal has completed the acquisition of Odisha Slurry Pipeline Infrastructure Ltd for a net consideration of INR 1,860 crore, filling a much needed gap in its supply chain logistics to procure iron ore for AMNS India. The company acted on an NCLT Cuttack order of March 2 and paid off the creditors, led by IDBI, earlier this month. It also inducted three directors on the board of OSPIL. The pipeline is a key infrastructure to ferry ore from the mine heads inside Odisha to the Paradip port without depending on road or rail network. The ore is then converted to pellets, loaded in ships and taken to Hazira in Gujarat

However, Calcutta-based NBFC Srei Infrastructure Finance Ltd, a fund sponsored by Srei and which held a 69.81 per cent stake in OSPIL, continues to dispute the transaction. SIFL, which had also lent INR 321 crore to the pipeline, did not accept the fund transferred by ArcelorMittal as part of the resolution plan and kept the amount in an escrow account. It had challenged the NCLT order at the appellate tribunal in Delhi soon after the March order but hearing on the matter was delayed because of the lockdown and other restrictions.

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Posted By : Yogender Pancholi on Mon, 03 Aug 2020
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