Baosteel of China to pick up a 5% stake in Kolkata based Visa Steel

KOLKATA: Baosteel of China is poised to pick up a 5% stake in Kolkata based Visa Steel Limited. This follows the amalgamation of Visa Bao Limited, the joint venture between Visa Steel and Baosteel Resources with Visa Steel Limited.

The amalgamation was approved by the board of directors of Visa Steel and Visa Bao at a meeting in Kolkata On Friday.

The decision is subject to all necessary approvals from regulatory authorities. Significantly, lenders of Visa Steel and Visa Bao have already approved the above amalgamation.

Visa Steel holds 65% stake in Visa Bao, with the Chinese partner holding the remaining 35% shareholding in the company. It was formed in 2008 to set up a ferro chrome plant in Odisha. Incidentally, Baosteel Resources Co. is the commodity mining and trading arm of Baosteel Group the world’s fourth largest steel group.

Commenting on the development, Vishal Agarwal, vice chairman & MD of Visa Steel said: “The amalgamation of Visa Bao with Visa Steel will make the latter 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.