Tata Steel Limited announced that its wholly-owned subsidiary Bamnipal Steel Limited (BNPL), has successfully completed the acquisition of controlling stake of 72.65 per cent in Bhushan Steel Limited (BSL).
“The investment from BNPL in BSL has been done through a combination of equity of Rs 158.89 crore and inter-corporate loan of Rs 34,973.69 crore. Additionally, Rs 100 crore has been paid by BNPL to the financial creditors of BSL as consideration for novation of remaining financial debt of BSL,” a statement issued by Tata Steel said.
The company also mentioned that the acquisition is being financed through a combination of external bridge loan of Rs 16,500 crore availed by BNPL and balance amount through investment by Tata Steel in BNPL. The bridge loan availed by BNPL is expected to be replaced by debt raised at BSL over time.
Pursuant to the acquisition, the nominees of BNPL have been appointed on the board of BSL and the existing directors of BSL are deemed to have resigned from its board as per the terms of the approved resolution plan.