Vedanta open up supply price for Essar Steel

NEW DELHI: NRI's metals, mining, oil and gas magnate, Anil Agarwal, is ready to raise the bid price for the acquisition of Essar Steel, estimating that the flagship group, Vedanta Ltd, is best suited to acquire the company because it contains the essential ingredients for manufacturing steel – iron ore and natural gas.

"The Court made it clear that the first round of applications would be the basis and allowed the three bidders to enter the circle. ArcelorMittal must pay dues to enter the ring and NuMetal must do the same if it wants to be in the running, "Agarwal told TOI.

Agarwal stated that Vedanta's offer in the first round of auctions on Essar Steel was greater than that offered by the other two candidates – ArcelorMittal and the Russian NuMetal group backed by VTB Capital.

"As far as we are concerned, we are definitely interested but I never wanted to fight. I have enough and I am happy. I did not go to court. I have never made noise (during the acquisition of Essar Steel). "

About what makes Vedanta the best suitor of Essar Steel, Agarwal said, "I am an iron ore producer, I am a natural gas producer, which will benefit Essar. I continue to be interested in Essar Steel (despite its fierce fight against the acquisition). "

The Vedanta, he said, remains eligible with his candidacy in the first round. "We are already in the ring … Once the conditions set by the Supreme Court together, the committee of creditors of Essar Steel will look at the offers received.

When reviewing its bid price, Agarwal said it was "open to everything" but will wait to see how the other two rivals act on the condition set by the Supreme Court. Vedanta, he said, has already explored the iron and steel industry with his acquisition of Electrosteel, amounting to 5,320 billion rupees, which was also auctioned by lenders to recover loans not reimbursed. "For us, steel making is a natural progression from being an iron ore producer."

Lenders auction Essar Steel to recover about 50,800 crore of late loans. During the legal battle over the eligibility of ArcelorMittal and NuMetal that followed the first round of bidding, the ad hoc vehicle based on VTB Capital raised its bid to 37,000 crores during the second round of bidding. ArcelorMittal has improved this offer by quoting Rs 42,000 crore. NuMetal has indicated that it would correspond to ArcelorMittal's offer.

The question was brought to the attention of the Supreme Court, which asked ArcelorMittal and NuMetal to repay the loans contracted by the group companies in India to be able to bid for Essar Steel.

The world's largest steelmaker, ArcelorMittal, and the consortium led by VTB Capital, NuMetal, objected to each other under the rule that bidders with ties to a failing to be part of the process.