Liberty House not keen on price war with JSW Steel over Bhushan Power & Steel

- Aug 29, 2018-

Business Line reported that Liberty House will not engage in a bidding war with JSW Steel in the insolvency-driven resolution process for Bhushan Power and Steel and will wait for the NCLAT (National Company Law AppellateTribunal) hearing on September 6 to understand whether revision of bids is allowed at the last moment. The report quoted a source close to the company as saying that “The court will decide if JSW Steel is qualified to revise the bid late. We are unlikely to enter into a price war as our bid is already very high reflecting our strategic desire to enter the Indian market. We do not see any logic in revising our bid higher but will decide after the court hearing.”

The three-way fight to acquire the stressed asset of Bhushan Power got an interesting twist when JSW Steel revised its bid twice. On August 14, it hiked its offer by INR 700 crore to INR 19,700 crore to pip both Tata Steel and Liberty House, which had retained their bids at INR 17,000 crore and INR 18,500 crore even after NCLAT gave opportunity twice to better JSW Steel bid.

Tata Steel had emerged the winner in the first round of bidding, but NCLAT directed Bhushan Power’s Committee of Creditors to go for rebids after the other firms expressed a wish to increase their offers. Tata Steel appealed to the Supreme Court against the NCLAT decision to consider revised bids. However, the apex court refused to stay the NCLAT order. NCLAT could not consider the highest bids placed by CoC during the last hearing on August 17 due to the demise of former Prime Minister Atal Bihari Vajpayee and posted the next hearing on September 6.

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