JSPL set to buy Oman firm for $464 million

JSPL set to buy Oman firm for $464 millionOn Thursday, Jindal Steel & Power Ltd. (JSPL) said that it is planning to buy one of Oman's company for $464 million. The name of the firm is Shadeed Iron & Steel Co LLC.

JSPL is doing this so that it can expand its foothold in the Middle East, so that the profitability of the company rises.

As part of the deal, the liabilities of the Oman-based company which are worth $79 million will be financed. This will be done by raising $400 million debt. The rest of the money i. e. $64 million will be raised through equity.

The information was given by the Director of JSPL, K. Maroo with news agency Reuters.

Maroo further added that the deal has been done so the construction sector of the region can be tapped. He also said that the products made in the Oman facility will then be exported to China.

One of the key projects of Shadeed is that it has invested $500 million in a gas-based hot briquetted iron plant. The annual production capacity of this is 1.5 million tons, and is expected to start its operations by the end of this year.