Nithia Capital and CarVal complete acquisition of Uttam Galva Metallics, Uttam Value Steel
Nithia Capital, a global distressed alternative asset manager and advisors, and CarVal Investors, a global alternative investment manager focused on distressed and credit-intensive assets, today announced that they have completed the acquisition of Uttam Galva Metallics Limited and Uttam Value Steel Limited through their Singapore-based Joint Venture Holding Company Wardha Steel Holdings Pte Ltd for a total purchase consideration of in excess of Rs 2000 crore.
Dr Johannes Sittard, Chairman and Founding member of Nithia Capital, has been appointed Chairman of Wardha Steel and Jai Saraf, founder and CEO of Nithia Capital, has been appointed Chairman of Uttam.
In a statement issued by the Nithia Capital, Jai Saraf said: “The acquisition of Uttam is an important and strategic step for Nithia Capital. Nithia envisions to create a consolidated steel operating platform of up to two million tons of steel production per year in India through acquisition and organic growth. We have been looking at multiple steel acquisition opportunities in India over the last few years and we are confident that we will continue to grow and build further on the success of Uttam. We consider India to be the engine of growth for world steel for the next 20-25 years, and it is our intention to actively participate in this process.”
He further added that Nithia Capital is delighted to be embarking on a partnership with CarVal. “Together we are confident that we will create significant value for all stakeholders, our employees and local communities. This transaction also demonstrates success of the Insolvency and Bankruptcy Code, a genuinely progressive reform”, Jai Saraf said.
Nimrod Wei, Managing Director, CarVal Investors said: “Our aim always is to identify unique value investment opportunities across the globe where we can leverage our proprietary research and our investment experience across cycles and geographies to create value for all the stakeholders. We are pleased to be working with Nithia Capital on the successful acquisition of Uttam and extend our sincere thanks to Indian lenders led by State Bank of India and Union Bank of India.”
Rajib Guha, Partner at Nithia Capital said: “This transaction has been a great learning curve for us in doing business in India. In the process, we have been successful in fostering stronger ties with local institutions and businesses. We are thankful for the support and cooperation we received from parties to bring this to a successful conclusion. The current bankruptcy process is working and is evolving quickly. We hope to achieve further resolutions for banks going into next year.”
Also Read: Plea of Uttam Value Steel operational creditors for fair treatment dismissed by NCLT
Uttam is an integrated mid-sized flat steel producer with annual capacity to produce 700,000 tonne crude steel. The facilities are strategically located at the centre of India near Nagpur with captive railway siding, enabling reach to all major markets countrywide and proxility to Iron ore. The plan of Nithia Capital and CarVal is to increase Uttam’s primary steel-making capacity by 50% in the immediate future by completing partially completed projects in a timely and cost effective manner.
Both Uttam Galva Metallics and Uttam Value Steel were acquired through insolvency proceedings that lasted for over two years.
Congratulations to Nithia Capital and CarVal Investors on this significant acquisition! It’s impressive to see how they plan to consolidate steel production in India, especially with Uttam’s strategic location near Nagpur. This move not only highlights the potential of the Indian steel industry but also underscores the effectiveness of the Insolvency and Bankruptcy Code in facilitating such transformations. As we look to the future of steel production, exploring innovative solutions in construction, like Pre-Engineered Buildings, will be crucial for maximizing efficiency and sustainability in the sector.