Essar Africa gets management control of Zisco

MUMBAI: Essar Africa, an international subsidiary of the Essar Group, on Friday said it has got management control of Zimbabwe Iron & Steel Co, or Zisco, the company it had agreed to acquire in August for $750 million, ending months of speculation that the deal could be delayed due to opposition from some government officials.

Essar's statement came close after the Zimbabwean government issued a clarification that it has reached an agreement with Essar Africa Holdings for the "immediate implementation" of the transaction. The statements were made after media reports in Zimbabwe suggested the mines ministry was not in favour of the deal as it transferred 80% control of Zisco's mines to Essar Africa.

Under the agreement, Essar Africa Holdings and the government of Zimbabwe formed two joint venture companies to acquire all the steel and mining related assets and liabilities of Zisco and its subsidiaries. Essar Africa also agreed to take over the liabilities of Zisco.

"We will now implement the agreement. The government has given the go ahead to transfer the assets and liabilities to the new entities," said Essar Africa resident director Firdhose Coovadia.