Nithia Capital, CarVal Investors close deal to buy two Uttam Steel group companies

5 Jan 2021

Nithia Capital, CarVal Investors close deal to buy two Uttam Steel group companies

Nithia Capital, a UK-based alternative investment manager that specializes in transforming under-performing acquired facilities into financially healthy business, and CarVal Investors, a global alternative investment manager focused on distressed and credit-intensive assets, announced on Tuesday that they have completed the acquisition of Uttam Galva Metallics Limited (UGML) and Uttam Value Steel Limited (UVSL) for a total consideration of ₹2,000 crore. The purchase is done through Wardha Steel Holdings Pte Ltd, Nithia Capital's Singapore-based joint venture holding company.Union Bank of India has the highest exposure in Uttam Galva Metallics at ₹921 crore, followed by Bank of Baroda at ₹680 crore and Punjab National Bank at ₹571 crore, among others.In May, 2020, the Mumbai bench of the National Company Law Tribunal (NCLT) has approved the sale of Uttam Value Steel Ltd and Uttam Galva Metallics to a joint consortium of CarVal Investors and Nithia Capital Resources Advisors for ₹2,300 crore,The group envisions to create a consolidated steel operating platform of up to two million tons of steel production per year in India through acquisition and organic growth. We have been looking at multiple steel acquisition opportunities in India over the last few years and we are confident that we will continue to grow and build further on the success of Uttam.