Tata Steel gets NCLT approval for acquisition of Bhushan Energy
Leading steel manufacturer, Tata Steel, got approval from NCLT in relation to the acquisition of Bhushan Energy under the resolution plan and will offer Rs. 730 crore as an upfront payment.
The National Company Law Tribunal (NCLT) approved the resolution plan of Tata Steel to acquire Bhushan Energy, debt-ridden auto grade steel manufacturer for around Rs. 800 crore on Thursday. The NCLT also further rejected objections from Bhushan Energy's former promoter Neeraj Singal opposing Tata Steels bid.
The company will offer an upfront payment of Rs. 730 crore under the proposed resolution plan. In addition to this, it would also pay Rs. 50 crore additionally to operational creditors of the company. Tata Steel will also infuse about Rs. 367 crore in the company as a part of equity infusion plan.
Tata Steel is the flagship company of the Tata group which has an integrated steel plant in Asia. The company is also one of the world’s geographically diversified steel producer and a Fortune 500 enterprise.
On Friday, the stock of Tata Steel closed at Rs. 487 per share, down marginally by 0.43 per cent on BSE.