The Vedanta group has set an enterprise
valuation of Rs 10,000 crore for these assets. However, potential buyers are
aiming for a reduced valuation.
JSW Steel and
ArcelorMittal feature among the likely bidders for the iron ore mines and a
steel plant of ESL Steel, which is a part of mining magnate Anil Agarwal-owned Vedanta
Ltd. The development indicates potential
acquisition opportunities and strategic investments in the iron and steel
industry as various entities explore options to expand their portfolios
and operations.
Vedanta Group has set an enterprise valuation of Rs 10,000 crore
for these assets. However, potential buyers are aiming for a reduced valuation,
indicating negotiations and considerations for the final acquisition price, the Business Standard reported on October 12.
Vedanta had initially
acquired the plant from Electrosteel Steels in June 2018 under the Insolvency
and Bankruptcy Code, marking its entry into the sector. But, as debt concerns
escalated, the LSE-listed company started looking out for the possibility of
selling the asset, triggering discussions on its valuation. The final
acquisition price will likely be determined through negotiations between
Vedanta and the potential buyers of the ESL Steel assets.