Essar Steel bid likely to be submitted by Posco
South Korean steelmaker Posco [KRX:005490] will likely submit a bid for acquiring the debt-burdened Indian steel company, EssarSteel , Business Standard reported, citing undisclosed merchant banking sources.
For FY16, ended 30 March 2016, Essar Steel had debt of INR 372.84bn (USD 5.84bn at current rates), the item noted.
Posco India's Managing Director, Gee Woong Sung, declined comment.
Other potential suitors for Essar Steel include Indian steelmakers TataSteel [NSE:TATASTEEL] and JSWSteel [NSE:JSWSTEEL], as well as global giant AcerlorMittal [AMS:MT].
Essar Steel is currently facing proceedings under the country's Insolvency and Bankruptcy Code, the paper added.
It was recently reported by Debtwire that Essar Steel is looking to raise around INR 25bn (USD 389.50m) in super-senior so-called interim financing under India’s new bankruptcy laws.