JSW Steel - Bhushan Power & Steel Resolution Timing Couldn't Have Been Better: ICICI Securities
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ICICI Securities Report
We view JSW Steel Ltd.’s announcement of the implementation of the resolution plan for the eventual acquisition of Bhushan Power and Steel Ltd. as timely.
The accumulated cashflows over FY19-21E, as per our estimate, can be approximately Rs 45-50 billion.
This can significantly improve the return dynamics of the acquisition for JSW Steel’s minority shareholders.
Bhushan Power and Steel will be initially held in a special purpose vehicle - Makler, held by Piombino steel - previously a 100% owned subsidiary of JSW Steel.
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