Essar Group Completes Asset Sales To Become Debt Free
Essar Group., the ports-to-power conglomerate controlled by billionaire brothers Shashi and Ravi Ruia, said it had become debt-free after repaying $25 billion.
(Bloomberg) -- Essar Group., the ports-to-power conglomerate controlled by billionaire brothers Shashi and Ravi Ruia, said it had become debt-free after repaying $25 billion.
Essar Ports & Terminals Ltd. and Essar Power Ltd. concluded the $2.05 billion sale of captive ports and power assets to ArcelorMittal Nippon Steel India Ltd., Essar said in a statement Monday. The deal included a 270 megawatt power plant and a port with capacity of 25 million tons a year at Hazira in Gujarat state and another 12 million-ton port at Paradip in the state of Odisha.
“Essar has concluded its asset monetization program, making the group debt-free from Indian banks and financial institutions,” said Prashant Ruia, director, Essar Capital Ltd., the investment manager of the conglomerate.
Essar Group has been selling assets including its refinery business, fuel retailing, power plants, ports for the last five years and delisting companies from stock exchanges as part of repaying debt to banks and financial institutions. India’s bankruptcy law had triggered the asset monetization.
Rewant Ruia, director, Essar Ports, said the group had monetized assets that were built over the last 30 years and is now reinvesting in existing operations and building new assets, both in India and overseas.
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