Liberty House’s bid for Adhunik Metaliks has won the approval of the Committee of Creditors, according to a statement issued by the U.K.-based group on Monday.
Adhunik, an integrated steel maker, was under the resolution process prescribed by the Insolvency and Bankruptcy Code since August 2017.
The bid will now be presented to the National Company Law Tribunal (NCLT) for approval. Once approved, British tycoon Sanjeev Gupta will finally be able to enter India. Gupta had tried to enter India three times since 2005, but had backed off eventually, as he didn’t feel the policy environment and the market conditions were ripe for investment.
“We have important ambitions for India and approval to acquire Adhunik is a milestone on our path towards implementing our vision for sustainable steel production and downstream manufacturing in the country,” Gupta said in the statement.
Adhunik, an integrated steel maker, has a production unit in Chadrihariharpur, near Rourkela, in Odisha. The plant has a capacity capable of being expanded to one million tonne per annum. Integrated operations include sponge iron, blast furnace, electric furnaces and downstream rolling of finished steel products.
The plant’s various facilities produce ferro alloys, billets, bars, and rounds, serving customers in the automotive, engineering, oil & gas, telecom, defence, power, railways, and construction segments.
“Adhunik’s integrated operations and supply linkages to downstream industry, especially to Amtek Auto, also recently approved for acquisition by Liberty House, will enable us to build this value chain progressively. India is a growing market with bright outlook for steel and downstream industries, in particular for the automotive sector. We look forward to completing the acquisition and implementing our resolution plan in a speedy manner,” Gupta added in his statement.
Recently, Liberty House won 94% votes by the Committee of Creditors of Amtek Auto for its bid to take over the auto components manufacturer. But, the bid was challenged in the NCLT on the ground of Liberty House's eligibility to participate in the process. The matter is pending at the NCLT's Chandigarh Bench.
The GFG Alliance—a loose federation of companies owned by Gupta and his family—is also evaluating opportunities to acquire assets such as Bhushan Power & Steel, ABG Shipyard, Castex Technologies, Metalyst Forgings, and Amtek Ring Gear as it aims to invest $5 billion over the next five years in India.
Through Liberty House and the GFG Alliance, the British businessman has acquired large swathes of the U.K.’s stressed steel plants, mining and energy assets in Australia and a steel plant in the U.S.