New Delhi: Jindal Steel and Power Ltd (JSPL) on Thursday announced that it has completed the acquisition of Oman-based Shadeed Iron and Steel Co LLC (Shadeed).
The acquisition was completed for $464 million, which includes the assumption of liabilities and was carried through by JSPL’s 100 per cent subsidiary, Jindal Steel and Power (Mauritius) Ltd (JSPLM).
Funding The Buy
For the acquisition, JSPL has tied up $400 million in debt financing from international banks while the rest of the amount would be from internal accruals.
The Shadeed facility is engineered by Kobe Steel (Japan) and Midrex (US), which are among the global leaders in the field of direct iron technology. This is also the same technology JSPL will be using in its Orissa facility.
Shadeed is also installing 1.5 million tonnes a year gasbased hot briquetted iron plant at Sohar Industrial Port area of Sohar, Oman.
Source : The Hindu Business Line. 24/05/10