AM/NS India to acquire portfolio of strategic infrastructure assets from Essar Group for USD 2.4 billion

The assets are either captive, including port assets in Gujarat, Andhra Pradesh, and Odisha, or allied to AM/NS India’s steelmaking and will strengthen the strategic integration of the Company’s manufacturing and logistics chain.

Full ownership of the strategically located port assets in Gujarat, Visakhapatnam, and Paradip will ensure seamless connectivity and supply chain security for the movement of raw materials and finished goods between AM/NS India’s manufacturing facilities in western, eastern, and southern India, as well as for exports. Acquisition of the power and transmission assets will ensure cost-effective, long-term power supply and energy efficiency at Hazira.

The assets being acquired are cash accruing and will generate operational synergies immediately upon completion of the transaction. AM/NS India will be able to realise further synergies from rising throughput at the port assets as a result of the company’s planned expansion of steel production capacity.

Transaction closing is subject to the completion of certain corporate and regulatory approvals. Key assets being acquired include:

Ports

 •           A 25 MTPA jetty at the all-weather, deep draft bulk port terminal at Hazira, Gujarat, captive andadjacent to AM/NS India’s flagship steel plant.

•           A 16 MTPA all-weather, deep draft terminal at Visakhapatnam, Andhra Pradesh along with anintegrated conveyor connected to AM/NS India’s 8 MTPA iron ore pellet plant in the port city.

•           A 12 MTPA deep-water jetty at Paradip, Odisha along with a dedicated conveyor that handles 100%of pellet shipments from AM/NS India’s Paradip pellet plant.

Power Plants

•           A 270 MW multi-fuel power plant at Hazira, which has a long-term power purchase agreement withAM/NS India’s adjacent steelmaking facility.

•           A 515 MW gas-based power plant, along with allied land that can be utilised for AM/NS India’sexpansion plans at Hazira.

Transmission Line

•           100 KM Gandhar – Hazira transmission line, connecting AM/NS India’s steelmaking

complex with thecentral electricity grid.