Published: 16 March 2018

The proposed acquisition of ZimAlloys' 70 percent shareholding by Balasore Alloys of India is hanging in the balance amid revelations that the Bombay Stock Exchange listed company has failed to meet the deadline to pay money for the equity.

Balasore Alloys, a Pramod Mittal group entered into a deal to acquire majority shareholding Zimbabwe Alloys consequent upon a scheme of arrangement sanctioned by the High Court on December 20, 2017.

The company received the approval on January 8, 2018. The deal involves a cash payment of $16,5 million for acquisition of 70 percent shares from existing shareholders, according to Balasore.

It would also entail a further payment of $74,3 million to creditors towards injection of working capital and for capital expenditure. The payment to the creditors and the shareholders would be staggered, Balasore said in a statement recently.
- Business Weekly

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