Essar signs $2.4bn sale pact with AM/NS for infra assets
(Posted on 07/09/22)
In one of the largest post-pandemic M&A deals in India, Essar today announced signing definitive agreements with Arcelor Mittal Nippon Steel (AM/NS) for certain Ports and Power infrastructure assets which are primarily captive to Hazira steel plant operations.
The deal also envisages a 50-50 Joint Venture partnership, for building a 4 MTPA LNG terminal at Hazira, Gujarat, between Essar and ArcelorMittal.
Rewant Ruia, Director, Essar Ports & Terminals Limited, said “With this deal, which yields a multifold return on our investments, Essar Ports and Terminals has unlocked value for all its stakeholders and will continue to focus on building new and modern core infrastructure assets in India and overseas.”
Mr Prashant Ruia, Director, Essar Capital, said “Essar is now repositioned for growth and resurgence. After consolidating our businesses over the last 4 years, we have now entered the next growth phase focused on helping build a sustainable energy future that will impact lives and livelihoods for a greener world.”
With this deal, Essar will conclude its planned asset monetisation programme and complete the debt repayment plan of $25 billion with the Indian banking sector being almost fully repaid. Essar’s aggregate revenues will stand at c.US$ 15 billion and an AUM (Asset Under Management) of c.US$ 8 billion comprising of various assets spread across India and overseas.
These assets under Energy sector include a 10 MTPA refinery in the United Kingdom, 15 TCF reserves (including some producing fields) of Unconventional Hydrocarbons in India & Vietnam and a 1,200 MW Power Plant in India; Infra sector assets include a storage terminal in UK of 3 million m3 capacity and a 20 MTPA Port in India; Metals & Mining sector assets include a major iron ore mine and pellet project in USA; Technology & Services sector assets include Global EPC business and IT solutions provider with centres across 30+ countries.
By monetizing assets in a planned and strategic manner, that were built with earlier technologies over the last several years, Essar is now poised to reinvest in new assets with the latest, more efficient and ESG-compliant technologies to last the next several decades.
Essar has planned significant investments in its core sectors of Energy, Infrastructure, Metals and Mining and Technology & Services. While ongoing businesses will provide operational stability, our renewed focus will be to Transition existing assets to Green and invest in sector-transforming clean businesses around the investment themes of Decarbonisation and Digitisation.
The closing of the M&A deal is subject to completion of certain corporate and regulatory approvals applicable for respective assets.
Latest News
WPCAP Creates global momentum for sustainable shipping
(Posted on 27/01/23)In addition to helping its 12 member ports decarbonize, the World Ports Climate Action Program (WPCAP... Read more
First ship of 2023 arrives at Port of Sept-Îles
(Posted on 27/01/23)The first ship of the year, M/V Cape Alexandros, arrived at 11:00 a.m. on January 4, 2023, from Rotterdam... Read more
AD Ports MoU with Turkish private steel producer Tosyal?,
(Posted on 27/01/23)AD Ports Group the leading facilitator of global trade, logistics, and industry, has signed a Memorandum... Read more
AD Ports Kazakhstan JV creates opportunities for bulk cargo
(Posted on 23/01/23)In the presence of the UAE President His Highness Sheikh Mohamed bin Zayed Al Nahyan, and the President... Read more
Port of South Louisiana agrees to purchase Avondale Global Gateway
(Posted on 16/01/23)The Port of South Louisiana (Port SL) CEO Paul Matthews, has announced that it has entered into a Purchase... Read more
Bulk increases in North Sea Port’s record year
(Posted on 16/01/23)With 73.6 million tons of cargo transhipment from maritime shipping (+7%) and 64.5 million tons from... Read more
Overall Dunkerque Port traffic grows despite Brexit and bulk decline
(Posted on 12/01/23)Despite unfavourable economic conditions, traffic in the port of Dunkerque, the third largest port in... Read more
Schalck highlights North Sea Port record figures despite war
(Posted on 10/01/23)North Sea Port CEO Daan Schalck has been looking back as well as forward. 2022, was a year in which... Read more
Multi-million pound deal for new de-icing salt facility
(Posted on 10/01/23)A multi-million-pound deal has been agreed to build a new road salt storage facility to support Scotland... Read more
New CEO appointed at Pilbara Ports Authority
(Posted on 10/01/23)Ports Minister Rita Saffioti has announced Samuel McSkimming as the new CEO of the Pilbara Ports Authority... Read more
