IMA for Electrosteel Steels till Vedanta gets control
PricewaterhouseCoopers (PwC) will be the Independent Managing Authority (IMA) for Electrosteel Steels Ltd and will monitor the company till its new promoter, Vedanta Ltd, gets control.
“As per terms of the Resolution Plan, the company is required to be monitored by an IMA under the instructions, control and management of a steering committee. PwC has been appointed as IMA,” Electrosteel Steels informed the bourses.
The National Company Law Tribunal’s Kolkata bench had approved a Rs 5,320-crore resolution plan for Electrosteel Steels from Vedanta.
The deal requires formal clearances from the Competition Commission of India and the Securities and Exchange Board of India.
Vedanta said a wholly-owned subsidiary of it would acquire Electrosteel Steels’ shares for Rs 1,805 crore and provide additional funds of Rs 3,515 crore by way of debt.
“Upon implementation of the resolution plan, the company will hold approximately 90 per cent of the paid-up share capital of Electrosteel,” the steel major said.
The remaining 10 per cent would be held by Electrosteel Steels’ existing shareholders and financial creditors.