JSPL aborts $500 mn buy out talks with UAE firm

NEW DELHI: Leading steel maker Jindal Steel and Power on Saturday said it has aborted discussions with UAE-based Al Ghaith Holdings for an estimated $500 million buy out of its assets in Oman citing many "issues".

" JSPL confirms that it has discontinued discussion with Al Ghaith Holdings of UAE for acquisition of Shadeed Iron & Steel (Shadeed), the 1.5 MT Hot Briquetted Iron (HBI) facility located in Sohar, Oman," the company said in a statement here.

Among major reasons, the Navin Jindal-led firm said that there was a title ownership issue due to existing transactions with a British Virgin Islands (BVI) company. BVI is a tax haven, which helps firms save on various levies.

Moreover, JSPL said the land title of the targeted unit was ambiguous.

"(There was) no clarity over the land title due to breach of the agreement with Sohar port authority," it added.

Further, the domestic firm said the Oman-based firm has "substantial incremental liabilities exceeding $50 million from China Shougang and Ajwaa Gas."

Shadeed is currently implementing a 1.5 MT HBI facility at port of Sohar in the Oman at an estimated cost of $500 million.