Mr Gupta Differs with Mr Hambro over GFG Aluminum Unit
Bloomberg News reported that Mr Sanjeev Gupta has fallen out with one of his top aides over the sale of his company’s aluminum assets. According to people familiar with the discussions “The clash with Mr Jay Hambro, chief investment officer at Gupta’s GFG Alliance, has reopened the competition for the group’s aluminum unit, which includes Europe’s largest aluminum smelter at Dunkirk, France. Hambro has angered Gupta by backing a bid from US private equity group American Industrial Partners. Now Gupta is considering proposals from several others, including commodity traders Glencore Plc and Trafigura Group, the people said, noting that AIP could yet secure the deal if it improves its offer.”
He has been fending off creditors since the collapse of his main lender Greensill Capital in March, and is facing a UK investigation into suspected fraud and money laundering.
People said “Mr Hambro, a scion of the British banking family, joined Gupta’s group in 2016 and has been one of his closest and most senior aides. However, the relationship between the two men soured after Hambro became involved with AIP’s bid for the aluminum assets In April, AIP bought most of the senior debt on Gupta’s two main aluminum assets, the Dunkirk smelter and the Duffel rolling mill in Belgium, putting it in position to buy them. Under AIP’s proposal, Hambro would have left GFG when the assets were sold and taken a job as a top executive of the newly-separate aluminum group.”
A spokesman for GFG Alliance said in response to questions that the group was focused on the refinancing of its business, and that its mergers and acquisitions team have led many acquisitions for GFG and have always acted with utmost integrity and professionalism.