Business Line reported that Visa Steel Ltd will close the INR 368 crore transaction with SunCoke Energy Inc for 49% stake in Visa Coke Ltd, its wholly owned subsidiary by January end.
Mr Vishal Agarwal CMD of Visa Steel said that the deal with NYSE listed SunCoke will be wrapped up and formalized by next month.
A significant part of the deal consideration will be used to reduce its long term as well as working capital borrowings of around INR 2,000 crore. The transaction, structured by KPMG, would bring in INR 355 crore to Visa Steel and the balance would go to the equity of VCL.
Visa Steel has sought approval of the lenders as well as shareholders to the JV proposal. The shareholders ballot result would be known on January 7th.
The deal wrap up would involve payment by SunCoke, share transfer and representation of SunCoke on the VCL board.
VCL, having a 400,000 tonnes a year heat recovery coke plant and steam generation units, has been carved out of Visa Steel's Kalinganagar 300,000 tonnes a year sponge iron project in Odisha. The Kalinganagar coke unit is located on a plot of 25 acres and the sponge iron and steel project covers an area of 500 acres.
