Mumbai, Dec 16: Jindal Strips Ltd, part of the OP Jindal group, has decided to bid for the Salem Steel plant. The company has also decided to enter into a joint venture agreement with SB International for acquiring the Bethlemn Steel cold rolling stainless steel facility at Masilion in the US.The company board has taken a decision to this effect at meeting on December 15.The company in a letter sent to the Bombay Stock Exchange (BSE) said that it proposes to purchase majority shareholding of Jindal Transworld Pvt Ltd for making it a subsidiary company and transfer the Vasind division of the company to it. The letter also said that it is planning to approve a draft offer document for foreign currency convertible bonds issue of $30 million.It may be recalled that Jisco was planning to takeover the Vasind unit but it was stalled due to objections from financial institutions. JSL was asked to prepare an alternative scheme which would help Jisco to takeover the unit on a differed payment arrangement.
The FIs had decided in October this year to observe the performance of Jisco for three months before inviting JSL with the reworked scheme.
Cold rolled units account for 10 per cent of its total turnover with the remainder coming from its core product stainless steel. JSL feels that carrying on with Vasind unit further would affect the company's balance sheet for the year, source said.
The hiving off has been done as an interim measure till Jisco is in a position to takeover the unit. The Us-based CRS company has a capacity of 60,000 tpa.
Copyright © 1999 Indian Express Newspapers (Bombay) Ltd.