Indian power and steel conglomerate Jindal has announced the planned sale of its wholly-owned Jindal Shadeed Iron and Steel Co LLC (JSIS Oman), an integrated steel mill located in Sohar Port, in a deal valued at around $1 billion.
Jindal Steel and Power Ltd (JSPL) said it had accepted a binding offer to sell its entire stake in the Sohar mill to promoter company Templar Investments Ltd. JSIS Oman was held through JSPL’s subsidiary Jindal Steel and Power (Mauritius) Ltd.
Set up in 2011, the 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.
Confirmation of the sale came in a press statement issued by V R Sharma, Managing Director, JSPL. “This sale is in line with our vision to reduce debt and create a much healthier balance sheet for our investors and stakeholders. We firmly believe in the India growth story," he said.
Templar Investments Ltd, Mauritius, is an investment company and part of the promoter group of JSPL. Alpen Capital, a West Asia-based investment bank, was appointed to run the sale process, while CMS Cameron McKenna Nabarro Olswang LLP, Oman, and Cyril Amarchand Mangaldas, India, were the legal advisers for the transaction, according to the press statement.
The transaction is subject to approval from shareholders of JSPL and lenders of JSIS Oman, among others. JSPL expects the transaction to close in a month.