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Visa Steel to close Rs 368-crore transaction with SunCoke Energy

13 Dec 2012 Evaluate

Visa Steel is planning to end the Rs 368-crore transaction with SunCoke Energy Inc for 49% stake in Visa Coke (VCL), its wholly owned subsidiary by January end. The company has decided to use the significant part of the deal consideration to reduce its long-term as well as working capital borrowings of around Rs 2,000 crore.

This transaction is structured by KPMG and will bring in Rs 355 crore to Visa Steel and the balance would go to the equity of VCL. VCL, having a four lakh tonnes-a-year heat recovery coke plant and steam generation units, has been carved out of Visa Steel’s Kalinganagar three lakh tonnes a year sponge iron project in Odisha. This deal will involve payment by SunCoke, share transfer and representation of SunCoke on the VCL board.

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