New Delhi : Tata Steel on Tuesday said it will raise Rs 16,500 crore through debt instruments to fund Rs 32,500 crore acquisition of Bhushan Steel (BSL).
The remaining amount will be raised through internal resources, it said.
The banks, according to industry experts, are expected to take a whopping haircut of about 30-35 per cent in the sale of BSL to an arm of Tata Steel. However, Tata Steel refused to comment on the haircut taken by the banks and financial institutions.
“We will be paying a total consideration of Rs 35,200 crore. This is expected to give us about 72.65 per cent equity in the firm and close to 100 per cent of economic interest in the company because of the way in which the transaction has been structured,” Tata Steel said.
Bhushan gets new management
Rajeev Singhal has become the new Managing Director of debt-laden Bhushan Steel which has been acquired by Tata Steel through the insolvency process. According to the information on Bhushan Steel’s website, its new Board comprises a Managing Director, one Independent Director and three Non-Executive Directors. While Krishnava Dutt was appointed as an Independent Director, Anand Sen, Shuva Mandal and Dibyendu Dutta are new non-executive directors.
