April 25, 2024 14:12 (IST)
Follow us:
JSW acquires equity shares held by WEL in WMSL
Mumbai, Aug 18 (IBNS): JSW Steel Limited has entered into a definitive agreement with WEL, pursuant to which the company shall acquire the entire equity shares held by WEL in WMSL for an enterprise value of Rs 1000 crores plus net current assets as of an agreed date of Aug 31, 2014, subject to the relevant regulatory approvals and customary closing conditions.
Seshagiri Rao, Jt MD & Group CFO said, “This acquisition is value accretive to JSW Steel due to synergies in supplying surplus pellets to Welspun MaxSteel and use of DRI from WMSL in company’s steel-making operations at Dolvi plant.”
WMSL has an installed capacity of 0.9 MTPA gas based DRI plant, with a captive jetty and a captive railway siding.
DRI plant is located in Salav village in Raigad district of Maharashtra. Captive jetty has an existing capacity of 2.5 MTPA which is located at 1.8 km from the plant, while the captive railway siding is located at Roha junction on national Konkan Railway, 35 km from the DRI plant. WMSL also has vacant land of approx. 4
The company has surplus pellets in its subsidiary Amba River Coke Limited which will be supplied to WMSL.
The cost of production in WMSL is expected to come down due to replacement of significant portion of its bought-out pellets with captive pellets.
The DRI produced by WMSL shall initially be used partly by the company’s Dolvi unit, and would be consumed in the entirety post completion of its ongoing expansion to 5 MTPA.
Ernst & Young and Luthra & Luthra carried out financial and legal due diligence respectively for the Company.
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
Support objective journalism for a small contribution.
Latest Headlines
Credit card spending grows 27% YoY to Rs 18.26 trillion in FY24: RBI Thu, Apr 25 2024
Mahindra Tractors crosses milestone by selling 40 lakh tractor units Thu, Apr 25 2024
DishTV India expects to touch 30 percent market share at the end of current financial year, says CEO Manoj Dobhal Thu, Apr 25 2024
DCB Bank Q4FY24: PAT grows YoY 9% to Rs 156 cr Wed, Apr 24 2024
NSE launches Derivatives on the Nifty Next 50 Index today Wed, Apr 24 2024
JPMorgan CEO praises PM Modi for doing 'unbelievable' job in India Wed, Apr 24 2024