The Ruia-promoted Essar Group on August 26 said it is selling certain ports and power infrastructure assets, which are primarily captive to Hazira steel plant operations, to Arcelor Mittal Nippon Steel for Rs 19,000 crore.

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"The deal also envisages a 50-50 joint venture partnership, for building a 4 MTPA LNG terminal at Hazira, Gujarat, between Essar and ArcelorMittal," the company said.

With this deal, Essar will conclude its planned asset monetisation programme and complete the debt repayment plan of Rs 2,00,000 crore to the Indian banking sector.

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After completion of this deal, Essar’s aggregate revenues will stand at Rs 1.2 lakh crore, with assets under management (AUM) of Rs 64,000 crore comprising assets spread across India and overseas.

Rewant Ruia, Director at Essar Ports Terminals Ltd, said "With this deal, which yields a multifold return on our investments, Essar Ports Terminals has unlocked value for all its stakeholders and will continue to focus on building new and modern core infrastructure assets in India and overseas."

These assets under the energy sector include a 10 MTPA refinery in the United Kingdom, 15 TCF reserves (including some producing fields) of unconventional hydrocarbons in India and Vietnam, and a 1,200 MW power plant in India.

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Essar’s infrastructure sector assets include a storage terminal in the UK of three million m3 capacity and a 20-MTPA port in India. Metals mining sector assets include a major iron ore mine and pellet project in the USA Technology. Its services sector assets include a global EPC business and IT solutions provider with centres across 30+ countries.

Prashant Ruia, Director at Essar Capital, said “Essar is now repositioned for growth and resurgence. After consolidating our businesses over the last four years, we have now entered the next growth phase focused on helping build a sustainable energy future that will impact lives and livelihoods for a greener world."

The closing of the M&A deal is subject to the completion of certain corporate and regulatory approvals applicable for respective assets, the company added.

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(Edited by : Shoma Bhattacharjee)