Indian power and steel conglomerate Jindal Steel and Power Limited (JSPL) confirmed on Wednesday that its Mauritian arm has sold a 48.99 per cent stake in its Oman asset, Jindal Shadeed Iron and Steel LLC to Vulcan Steel, a subsidiary of Templar Investment, an investment company and part of the promoter group of JSPL.
The transaction represents the first tranche of the sale, which the company aims to complete within a specified time, it said in a filing. Earlier, in June JSPL had said that it would sell its entire stake in its Oman asset for an enterprise value of over $1 billion to Templar Investment.
“Jindal Steel & Power (Mauritius) Ltd (JSPML), wholly owned subsidiary, has sold 4,86,999 shares, representing 48.99 per cent of the share capital of JSIS Oman, to Vulcan Steel, a Mauritius-based private limited company, a subsidiary of Templar Investment in the first tranche,” the filing said.
Set up in 2011, Jindal Shadeed’s Sohar complex is a key source of hot briquetted iron (HBI), steel billets and rebars for the infrastructure, construction and hydrocarbon industries in Oman and the wider region. The integrated mill features a Direct Reduction Iron (DRI) plant, Steel Melting Shop (SMS) and rebar manufacturing unit.
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