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JSW Steel Limited has bought a 41 percent stake by way of preferential allotment of 1 billion equity shares in ISPAT Industries Limited in a deal amounting to Rs. 2,175 crore ($450 million).
Economic Laws Practice advised ISPAT Industries with a team led by Partners Suhail Nathani and Sujjain Talwar along with Associate Partners Darshan Upadhyay, Ramya Mohan, Yashojit Mitra and Associate Archana Khosla.
Speaking to Bar & Bench on the transaction Suhail said, “The unique feature of the deal was speed, we went from being mandated to execution in ten days and there was substantial complexity on structuring and regulatory compliances. Another important aspect was the lender concerns which needed to be addressed”.
Amarchand & Mangaldas advised JSW Steel with a team led by Managing Partner Cyril Shroff and Senior Partner L. Viswanathan. This is second innings with JSW for Amarchand, as early this month it had advised JSW Energy in acquiring CIC Energy Corporation for $414 million (Rs. 1,886 crore).
The promoters of ISPAT Industries i.e. Pramod and Vinod Mittal were advised by their in-house counsels.
State Bank of India, ICICI Bank and IDBI Bank acted as the lenders to ISPAT Industries with IDBI acting as the largest lender. The consortium of banks debt load amounts to Rs. 7,000 crore, reports the CNBC.
Pramod and Vinod Mittal are expected to hold a small stake going forward even as the acquirer takes management control of ISPAT Industries Limited, according to ET Now.