Sarda Energy may bid with SSG for 2 units of Uttam Galva Steels
21 December 2018
Sarda Energy Minerals (SEM) may try to acquire distressed companies Uttam Value Steels and Uttam Galva Metallics by bidding jointly with Hong Kong-based SSG Capital Management, two people aware of the development said.
The flagship company of the Sarda Group of Industries, SEM is a listed steel producer based in Raipur, Chhattisgarh, specialising in making niche grade manganese-based ferro-alloys, an additive in making steel. It owns a 20 million tonne iron ore mine in Rajnandgaon in the state.
The two subsidiaries of Uttam Galva SteelsNSE -0.46 % together owe Rs 5,400 crore to lenders and SEM’s interest stems from the opportunity to expand its product portfolio, said one of the persons.
“The company is having discussions on potential growth opportunities,” said another person closely associated with SEM. SEM had previously shown interest in acquiring Impex Metal, a small-scale steel company based in Kolkata that eventually went into liquidation after lenders were unconvinced by the bids that came in.
Chaired by Kamal Kishore Sarda, SEM reported a consolidated net profit of Rs 206 crore on revenue of Rs 2,217 crore for FY18. A consortium led by SSG Capital Management has put in an expression of interest for Uttam Value Steels and Uttam Galva Metallics.
The group includes Synergy Metals & Mining and ART Special Situations Finance (India). Other bidders are JSW Stee, Liberty House, Aion Capital, Phoenix ARC and a consortium led by New Zone Intertrade FZE. The deadline for final bids is December 21. Uttam Value Steels and Uttam Galva Metallics were taken to insolvency tribunals last year by State Bank of India.