TATA, JSW and Essar Steel in fray to acquire Shree Precoated

BS reported that TATA Steel, JSW Steel, Essar Steel and Uttam Galva Steels are bidding to acquire a majority stake in Ajmera Group’s Shree Precoated Steel.

A source close to the development said “Three primary steel makers TATA Steel, JSW Steel and Essar Steel and a prominent secondary steel maker, Uttam Galva Steels have evinced interest to acquire the majority stake in Shree Precoated Steel and have submitted their respective bids.”

He said that all the four interested parties in the fray have done due diligence and the valuation offered by them ranges between INR 700 and INR 800 crore.

M V S Seshagiri Rao Joint MD & CFO of JSW Group when contacted said that the company was “not at all” interested in acquiring Shree Precoated Steel.

An Essar Steel spokesperson declined to comment and a TATA Steel spokesperson said that he had no idea on the issue.

The Ajmera Group has been mulling to sell off its majority stake in Shree Precoated Steel for two years now but it did not materialize owing to differences in valuation with the interested parties.

The company has interests in both realty and steel. It was demerged as Ajmera Realty and Infra India. Post-demerger, the realty division got listed and the steel division is in the process.

The source said “The management however has already filed the requisite papers for listing of the steel division.”

Shree Precoated Steel, the largest manufacturer and exporter of colour coated steels having backward integration of galvanized and cold-rolled steels under one roof, makes 1.8 lakh tonnes galvanized steel per annum and one lakh tonnes colour coated steel.
(Sourced from http://www.steelguru.com/news/index/2009/07/09/MTAxNDI4/TATA%252C_JSW_and_Essar_Steel_in_fray_to_acquire_Shree_Precoated.html)

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