VISA Steel Limited and Baosteel Resources Co. Ltd., China, have announced the amalgamation of their Joint Venture Company, VISA Bao Limited with VISA Steel Limited. Consequent to the amalgamation, Baosteel will hold 5% stake in VISA Steel.
The amalgamation was approved by the Board of Directors of VISA Steel Limited and VISA Bao Limited at its meeting held in Kolkata on 21st August 2015, and is subject to all necessary approvals from regulatory authorities. The Lenders of VISA Steel and VISA Bao have already approved the above amalgamation. VISA Bao Limited was set up in 2008 for setting up a Ferro Chrome Plant in Odisha in which VISA Steel holds 65% stake and Baosteel holds 35% stake.
Commenting on the announcement, Vishal Agarwal, Vice Chairman & MD of VISA Steel said, "The amalgamation of VISA Bao with VISA Steel will make VISA Steel one of the largest Ferro Chrome producers in India. The integration will improve the operational and cost efficiency of the Ferro Chrome business."
VISA Steel is also in the process of transferring its Special Steel Business having 0.5 million TPA Special Steel Plant including Blast Furnace, Sponge Iron, Steel Melt Shop, Refining facilities and Bar & Wire Rod Mill to its subsidiary, VISA Special Steel Limited, to create better focus and facilitate inviting strategic investor.
VISA Steel has also formed a joint venture with SunCoke Energy, USA (America's largest independent coke manufacturer) as a strategic investor in the Coke Business in 2013. VISA Steel holds 51% stake in the joint venture named VISA SunCoke Limited and the balance 49% stake is held by SunCoke Energy.
(Continued on the next page)