Mumbai: JSW Techno Projects Management Ltd, the project management arm of Sajjan Jindal-led JSW Group, on Monday said it will be acquiring a 49% stake in Brahmani River Pellets Ltd (BRPL).
JSW Techno will acquire the 49% stake in BRPL from Aryan Mining and Trading Corp. Pvt. Ltd, the company said in a stock exchange filing. Financial details of the transaction were not disclosed.
Established in 2006, BRPL manufactures and sells iron ore pellets. The company currently owns a 4 million tonne per annum (mtpa) pellet production plant in Jajpur, Odisha, a 4.7 mtpa iron ore beneficiation plant in Barbil, Odisha, and a 230km slurry pipeline connecting the pellet plant with the beneficiation plant.
“The company has executed definitive agreements to acquire 49% equity shares of BRPL from Aryan Mining. The acquisition is subject to approval from the Competition Commission of India and other conditions precedent as set out in the definitive agreements,” the statement by JSW Techno added.
Aryan Mining and Trading Corp. is a unit of Moorgate Industries Group, which was set up to hold the Indian iron ore assets of UK’s debt-ridden steel trader Stemcor Group when it was restructured through a UK court process in 2015, in the aftermath of a crash in steel prices worldwide due to excess capacity in China and sluggish demand.
The deal with JSW Group comes just a couple of months after rival Tata Steel Ltd terminated an agreement to acquire 100% stake in BRPL for around Rs900 crore.
Tata Steel in December last year had announced the signing of an agreement to acquire BRPL.
JSW Techno renders project management services which include management consultancy services and acting as adviser in matters relating to finance, management, expansion, cost control, technical know-how planning and development, and undertaking strategic long-term investments.