Tata Steel Saturday announced that it has completed the acquisition of debt-ridden Bhushan Energy Ltd.
The announcement came after the National Company Law Tribunal (NCLT) approved the resolution plan of Tata Steel to acquire Bhushan Energy for around Rs 800 crore.
"We wish to inform you that Tata Steel BSL Ltd has successfully completed the acquisition of Bhushan Energy Limited (BEL) in accordance with the Approved Resolution Plan under the Corporate Insolvency Resolution Process of the Insolvency and Bankruptcy Code, 2016," Tata Steel said in a BSE filing.
Pursuant to the acquisition, the company holds 99.99 per cent of the total equity share capital of BEL.
"This disclosure is made in compliance with Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015," the filing said.
The principal bench of NCLT Delhi on Thursday also rejected objections from Bhushan Energy's former promoter Neeraj Singal opposing Tata Steels' bid.
Bhushan Energy was a subsidiary of Bhushan Steel Ltd, which was also taken over by Tata Steel last year in May and later renamed as Tata Steel BSL Ltd.
Tata Steel had offered Rs 35,200 crore in cash to acquire Bhushan Steel besides Rs 1,200 crore to creditors and convert the remaining debt owed to banks to equity.
Incorporated in 2005, Bhushan Energy is based in Dhenkanal, Odisha.
In FY 2015-16, Bhushan Energy had reported a gross debt of Rs 2,336 crore.
Earlier in June last year, in this matter, the NCLT had extended the insolvency resolution period for 90 days after the creditors failed to find a suitable buyer within the initial period of 180 days as mandated under the Insolvency & Bankruptcy Code (IBC).