Lakshmi Mittal-controlled Arcelor Mittal sweetened its bid for Essar Steel by offering an additional equity infusion of Rs 8000 crore over and above the Rs 42000 crore it promises to pay for acquiring the bankrupt steelmaker. The move raises Arcelor Mittal’s total bid for Essar Steel to Rs 50000 crore.
In FY17, the latest year for which financials are available, Essar Steel earned an Ebitda of Rs 2841 crore, but depreciation alone amounted to Rs 1903 crore. Ebitda stands for earnings before interest, tax, depreciation and amortization. Its interest cost in that year was Rs 5608 crore and it ended FY17 with a net loss of Rs 5198 crore. But FY18 financials may look better, based on how listed firms have fared.
Prem Watsa-promoted Fairfax India Holdings Corporation (Fairfax India) announced that it has received all required regulatory approvals and has completed the initial closing of its aggregate Rs 1200 crore investment in The Catholic Syrian Bank (CSB).
In connection with the initial closing, Fairfax India invested Rs 440 crore in equity shares and warrants of CSB. The remaining consideration is payable within 18 months following the initial closing, either upon request by CSB or at the option of Fairfax India. Upon the completion of the aggregate transaction, Fairfax India will own 51% of CSB.
This is the first deal in which a foreign investor is taking up a majority stake in a private bank after the Reserve Bank of India (RBI) tweaked ownership norms in May 2017.
On the initial public offering, the bank is going ahead with its plan to list by 2019. The bank will also have 1,000 branches against 423 now, and will become pan-Indian. Nearly half of its branches are in Kerala. The bank is headquartered in Thrissur, Kerala.
The Catholic Syrian Bank Ltd., established in 1920, is a full-service bank offering Neighborhood Banking, Non-Resident Indian Services, Small-to-Medium-Enterprise and Wholesale banking services through 423 branches and 264 ATMs across India.
Fairfax India is an investment holding company whose objective is to achieve long-term capital appreciation, while preserving capital, by investing in public and private equity securities and debt instruments in India and Indian businesses or other businesses with customers, suppliers or business primarily conducted in, or dependent on, India.
Xerox India provides document management solutions to government, education, and commercial and other public sector customers. It offers printing and publishing systems; digital multifunction devices; digital copiers; laser and ink printers; fax machines; document-management software; and supplies, such as toner, paper, and ink.
The company also provides software and solutions that are used by businesses to print books, create personalized documents, and scan and route digital information. In addition, it offers document management services, such as operating in-house production centers, developing online document repositories, and analyzing how customers create and share documents in the office.
The company was formerly known as Xerox ModiCorp Ltd. and changed its name to Xerox India in March, 2005. The company was founded in 1983 and is based in Gurgaon, India. Xerox India operates as a subsidiary of Xerox Corporation.