Aferpi makes specialty long products for railways, bars for auto industry parts, earthmoving vehicles, among others and is the second largest steel maker in Italy. JSW Steel is also set to buy Monnet Ispat for Rs 3,750 crore.
Private steel maker JSW Steel is close to acquiring Italy-based Aferpi steel firm, for Rs 6 billion, a source in the know of the matter said.
“The deal is almost finalised. Most probably by the end of March or beginning of April, it will be final,” the source said, adding that the deal is worth about Rs.600 Core.
Aferpi makes specialty long products for railways, bars for auto industry parts, earthmoving vehicles, among others and is the second largest steel maker in Italy.
An email query sent to JSW Steel remained unanswered.
The plan is to cater to the automobile customers of Europe. HR coils will be sent from India and further finished products will be sold to the customers there.
The company has been for long trying to have a facility in the European region. JSW Steel had earlier also tried to acquire Italian property in 2014 when it was known as Lucchini. But Algerian conglomerate Cevital acquired Lucchini and renamed it Aferpi.
In the first resolution of an NPA account on RBI’s first list, JSW Steel is all set to buy debt-ridden Monnet Ispat for Rs 3,750 crore, media reports on Friday quoted sources.
Monnet Ispat faces claims of Rs 10,359 crore from financial creditors and Rs 116 crore from operational creditors, the report said.
The company, which is part of the first lot of 12 defaulters referred by the Reserve Bank of India for insolvency proceedings, has a sponge iron unit with a capacity of one lakh tonnes a year.
The deal will be first such resolution of an NPA account on RBI’s first list. Monnet Ispat lenders are believed to have got favourable legal opinion to sell the company to JSW.
The report further said that JSW Steel may announce takeover of Monnet Ispat on Monday.
Lenders had sought legal opinion on the matter, given close family ties between promoters of Monnet Ispat and JSW.
Stocks goes high
Rahul Shah of Motilal Oswal told, “I think metal stocks as a sector has been doing quite well and I think that on every dip this stock has been bouncing up after that very well. In that space I think JSW Steel looks quite interesting in the metal pack. So, I don’t think the stock can do much better from here. Buy JSW Steel with a stop loss of Rs 307 and target of Rs 328.”