November 22, 2008

Essar nets INR 200 crore from Esmark bid

BS reported that Essar Steel has been compensated with USD 45.3 million for withdrawing its bid for US steel maker Esmark.

Russian metal giant Severstal, the successful suitor, paid Essar USD 25 million as a termination fee and a loan cancellation charge of USD 20.3 million.

The Essar sources said this is the amount received by the company as a break up fee and exercise of warrants attached to the loan provided to Esmark, which is now being bought by Severstal.