The total value of the deal could be around Rs 30,000 crore, according to banking sources.
The move is reported to have been initiated by the consortium of banks that have lent money to Bhushan Steel, which has a total debt of around Rs 35,000 crore on its books. Bhushan Steel has been asked by the banks to sell its Odisha steel plant, which has a capacity of 5.6 million tonnes per annum.
However, promoters of Bhushan Steel have been trying to find ways of bringing down the Odisha unit is up for sale.
Bhushan Steel had informed the Bombay Stock Exchange recently that the Board of Directors at its meeting held on November 14 inter alia approved the draft notice of postal ballot for passing special resolutions for payment of managerial remuneration, appointment of Ajoy Kumar Deb nominated as nominee director by the State Bank of India (SBI) and accepted the resignation of Sushant Jain as independent additional director.
Sources pointed out that this reflects that the banks are strengthening their control over running the company. JSW Steel neither confirmed or denied the move. "We do not want to comment on market rumour or speculation," a JSW spokesman told Mail Today.
Bhushan Energy has about 15 per cent stake in Orissa Sponge, in which Monnet Ispat holds 41-per cent stake. JSW Steel has put its West Bengal steel and power plant on hold due to uncertainty of raw material linkages for the proposed Rs 35,000-crore project. JSW Bengal has already invested Rs 700 crore in the project, at Salboni, West Midnapur.
"It was keen about the project but given the unclear situation about coal and iron ore, it was not practical to go ahead with the project," Jindal had told journalists on Sunday. According to industry sources, JSW would be looking for alternative expansion through the merger and acquisition route and acquisition of the Bhushan Steel assets would be a good strategic fit for the company.
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