Previous Page
JANUARY 2013
Transactions
101
MItSUI & co Ltd and SanYo SPEcIaL StEEL co Ltd acQUIRE
StaKE In naVYUG SPEcIaL StEEL PRIVatE Ltd
The Board of Directors of Mahindra Ugine Steel Company Limited (MUSCO) has announced the financial closure of the 51:49 Joint Venture with Sanyo Special Steel Co. Ltd. and Mitsui & Co. Ltd. The new Joint Venture company will be called Mahindra Sanyo Special Steel Private Limited.
MUSCO had approved the slump sale of its steel business into its 100% owned subsidiary, Navyug Special Steel Private Limited (Navyug Steel) in November 2011.
Following the board meeting of Navyug Steel, the allotment of shares has been completed against cash infusion by Sanyo of approximately Rs. 129 crore for their stake of 29%, while Mitsui paid approximately Rs. 89 crore for their 20% stake in Navyug Steel (JV Co). MUSCO holds the balance 51% of equity in the JV.
With financial, technical and operational inputs from Sanyo Special Steel Co. Ltd. and Mitsui & Co. Ltd., the JV expects to enhance both its current production from the existing level of 120,000 tons per annum, the value it adds to the steel and therefore the special applications which the JV can now address.
“The Mahindra Group welcomes this JV which will create a strong value proposition and enable MUSCO to leverage Sanyo’s technical expertise and Mitsui’s international footprint. This new venture will help the company to emerge as one of the most profitable, high quality speciality steel producers in the coming years,” said Anand Mahindra, Chairman and Managing Director, Mahindra Group. LM
HERItaGE acQUIRES MaJoR IntERESt In oML 30 In nIGERIa
Heritage oil Plc acquired a 45% interest in oML 30 in nigeria for $850m on november 9 2012.
OML 30 is one of Nigeria’s largest onshore licences, having eight producing fields located onshore in the delta region, covering an area of 1,097 square kilometres.
This Acquisition was funded partly by a US$550 million secured bridge finance facility from The Standard Bank of South Africa. LM
Navyug Special Steel Private Ltd
OML30