On 23 Dec’16, Tata Steel had announced that it is in the process of executing definitive agreements to acquire 100% equity shares of Brahmani River Pellets (BRPL) from Aryan Mining & Trading Corporation (AMTC) and companies in the Moorgate Industries Group (MIG).
But as per the latest update, the steel maker has terminated the purchase agreement with AMTC for acquisition of BRPL.
The BSE filing states that the transaction has not been completed within the long stop date due to non fulfillment of certain conditions precedent by the sellers, such as obtaining the necessary regulatory approvals from RBI, settlement of proceedings under FEMA by the Directorate of Enforcement, approval from the income tax authorities etc. In the absence of clear approvals, the shares could not be transferred with a clear title.
The transaction was based on an enterprise value of BRPL of INR 900 crores plus closing adjustments and was subject to completion of certain conditions precedents including regulatory approval.
BRPL is engaged in the iron ore beneficiation and manufacturing & selling of iron ore pellets. BRPL owns 4 MnT pa pellet plant in Jajpur (Odisha), 4.7 MnT pa iron ore beneficiation plant in Barbil (Odisha) and 220 km slurry pipeline connecting pellet and benefication plants.
BRPL has been actively exporting pellets. According to customs data maintained with SteelMint, It has exported 0.77 MnT pellets so far in FY18 (till Sept’17).
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