ArcelorMittal is offering an additional equity infusion of ₹8,000 crore over and above the ₹42,000 crore it promises to pay for acquiring Essar Steel
Mumbai: Lakshmi Mittal-controlled ArcelorMittal on Tuesday sweetened its bid for Essar Steel by offering an additional equity infusion of ₹ 8,000 crore over and above the ₹ 42,000 crore it promises to pay for acquiring the bankrupt steelmaker, said a banker on the committee of creditors of Essar Steel.
The move raises ArcelorMittal’s total bid for Essar Steel to ₹ 50,000 crore.
On Friday, Essar Steel’s committee of creditors declared ArcelorMittal the H1 bidder for the bankrupt steelmaker. Presentations were made by ArcelorMittal and Vedanta of their respective resolution plans. ArcelorMittal had placed an offer of ₹ 35,000 crore plus ₹ 8,000 crore of equity infusion on the table while Vedanta could only place an equity infusion offer of ₹ 5,000 crore.
The CoC has begun the voting process on the two bids. The results are expected to be announced on Wednesday. At least 66% of lenders have to approve of a single plan for it to be accepted at the NCLT.