Welspun Enterprises (WEPL), part of the $3 billion Welspun Group, has completed the sale of Welspun Maxsteel (WMSL) to JSW Steel (JSW) in follow up of the definitive agreement entered between the two companies on August 18, 2014.
The deal which included the sale of the entire shareholding of WMSL held by WEPL to JSW Steel was cleared by ‘the Competition Commission of India (CCI)’ on September 23, 2014. The deal concluded with further infusion of approximately Rs 19.4 crore by WEPL after adjusting the value of net current assets receivable by WEPL to fulfill the gap between the current long term loan liabilities of WMSL and amount infused by JSW in WMSL. As a result, WMSL's long term loan liability of approximately Rs 1,095 crore stands fully repaid.
Welspun Group had earlier identified Welspun Maxsteel, as its non-core business, hence has accordingly exited the same.
