LNM closes in on Sesa Goa, bids Rs 2,200/share

MUMBAI: Arcelor Mittal has reportedly put in a bid of around Rs 2,200 per share for Mitsui Corp’s 51% stake in Sesa Goa, India’s biggest private exporter of iron ore. People in the know say Arcelor Mittal’s bid is marginally higher than those from other contenders like the Aditya Birla group, which is believed to have bid around Rs 2,000 per share.

But it is still early days to say if the world’s largest steel company will emerge the winner. The race to control Sesa Goa has also brought in players such as Vedanta Resources and global mining major CVRD.

Arcelor Mittal, the Aditya Birla group and Mitsui Corp declined to comment. According to sources, an announcement on the stake sale is likely next week. Mitsui’s advisor in the stake sale is Morgan Stanley.

“The highest bid is near the Rs 2,200 per share mark. It is below the bids received in the first two rounds that were around Rs 2,500 per share,” said an official who is involved in the transaction.

The Arcelor Mittal offer of Rs 2,200 per share values Sesa Goa at over Rs 8,600 crore; the deal would be worth over Rs 4,400 crore.