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Jindal Steel to re-bid for 70% in Zimbabwe’s Zisco

31 Aug 2010 Evaluate

Jindal Steel and Power plans to re-bid for a controlling stake in Zimbabwe Iron and Steel Company, or Zisco, more than two months after the African company rejected the Delhi-based firm’s earlier bid, according to sources. Jindal Steel renewed its offer after the Zimbabwe government recently invited fresh bids for selling 70% equity stake in the state-run Zisco which also owns iron ore reserves of 100 million tonnes.

Jindal Steel has interest in the deal because apart from owning huge iron ore reserves, Zisco also owns a 0.8 million tonne steel plant that will build its presence in the African market. Zisco also owns limestone mines with reserves of 60 million tonne.

The Zimbabwe government has been looking for a suitor for the cash-starved Zisco, which had piled up debts amounting to about $300 million. The government invited bids last October that saw large companies like Jindal Steel, ArcelorMittal South Africa and Gateway Zimbabwe putting in their bids. Although the bids were later cancelled, concerns over Zisco’s mounting debts forced the government to re-invite the bids.

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