Staff wants to buy Stemcor India
Unfazed by the British parent rejecting their previous management buyout plan, Stemcor India employees, backed by minority partner industrialist Sanjay Saraf, are all set to bid for the $800 million assets on the block.
Unfazed by the British parent rejecting their previous management buyout plan, Stemcor India employees, backed by minority partner industrialist Sanjay Saraf, are all set to bid for the $800 million assets on the block.
Sources said Stemcor India employees are not disheartened, and would now participate in the auction likely to take place in mid-September.
Following a decision taken by the UK-based trading firm Stemcor in April, Stemcor India’s senior management had asked the parent firm to consider selling the assets to a group led by a thousand-odd employees.
Minority shareholder Sanjay Saraf and family, who have the first right of refusal to the Stemcor India assets, had also lent support to employees.
But the proposal was rejected and Stemcor management began discussions with potential buyers without consultations with Stemcor India management.
“Employees had placed the offer to the UK-based management and quoted $800 million as the enterprise value for the assets of Stemcor India,” a company official said.
Asked whether the employees and the minority partner could muster such a sum, he said the top management of the firm was in touch with some domestic private sector steel makers seeking a helping hand in lieu of some stake.
