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Tata Steel to match JSW bid for Bhushan Power & Steel - Report

Steel News - Published on Thu, 18 Oct 2018

Image Source: SteelGuru
Financial Chronicle reported that Tata Steel plans to match the highest bidder in the race for debt-ridden Bhushan Power & Steel. Sources privy to the development said Tata Steel would approach the committee of creditors (CoC) seeking an opportunity to match the highest bidder for BPSL as the company had emerged as the successful resolution applicant and issued letter of intent (LoI) in the earlier rounds of bidding conducted in supervision of the insolvency court.

Tata Steel’s move means it would revise its bid to INR 19,700 crore from its earlier INR 17,000 crore. In the revised bid invited under directions from the National Company Law Appellate Tribunal (NCLAT) in August, JSW Steel is understood to have made the highest offer of INR 19,700 crore followed by INR 19,000 crore bid from UK-based Liberty House.

Tata Steel did not revise its bid in August and sought directions from the Supreme Court to quash re-bid for BPSL. But with the apex court throwing the ball again in the court of NCLAT to decide the fate of re-bids, sources said Tata Steel thought it is right to approach the CoC seeking rightful opportunity to match the highest bidder. It is not clear on what grounds CoC could give this option to Tata Steel but experts said that a clear winner of an earlier round of auctions could be asked to match the highest offer if auction process got entangled in procedural and legal complications.

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Posted By : Ratan Singh on Thu, 18 Oct 2018
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