Mittal keen to takeover Global Steel's ailing mill in Bulgaria
Steel tycoon Lakshmi Niwas Mittal has intensifed efforts to take control of Global Steel Holdings Ltd's ailing Kremikovtzi steel mill in Bulgaria.business Updated: Mar 23, 2008 19:11 IST
Steel tycoon Lakshmi Niwas Mittal has intensifed efforts to take control of Global Steel Holdings Ltd's ailing Kremikovtzi steel mill in Bulgaria.
The mill, run by Pramod Mittal -- the younger brother of L N Mittal, has seen labour unrest and faces the possibility of being re-nationalised by the Bulgarian government.
In a letter to the Bulgarian Cabinet, the senior Mittal has pledged to do the needful to restructure the mill and invest enough money to absorb its outstanding liabilities, believed to be around one billion dollars.
"We have appointed Merril Lynch to rope in a strategic partner who can join Global Steel to help revive Kremokovtski, which has no raw material and is facing a lot of problems," a Global Steel official told PTI.
L N Mittal is facing challenge from Ukranian millionaire Konstantial Zhevago, who owns London-listed iron ore producer Ferrexpo, Turkish company Erdemir, and Ukrainian tycoon Rinat Akhmetov, Kryvorizhstal.
"The businessman (Mittal) promised to improve the results of the holding, which are to be in compliance with all environmental legislation at local, regional and international level," Bulgaria's The Sofia Echo stated quoting the country's Economy and Energy Minister Petar Dimitrov as saying.
Besides, assuring to restructure the 325 million euro bond and the state loan, Mittal committed to settle late payments for tax, social security contributions and other debts owed by Kremikovtzi, wherein Global Steel Holdings (GSH) has a majority stake.
Dimitrov said, the state would not sell its 25 per cent stake and involvement of the state in the takeover negotiations only referred to the environmental programme and viability of the proposed modernisation plans, the daily said.