Sanjeev Gupta approaches Glencore to ‘rescue his business empire’
BILLIONAIRE Sanjeev Gupta’s GFG Alliance is again pursuing a deal with Glencore to refinance his European aluminium business, which includes Europe’s largest aluminium smelter at Dunkirk, reported The Times.
Glencore is an Anglo-Swiss multinational commodity trading
and mining company with headquarters in Baar, Switzerland.
An agreement to forward-sell aluminium production to the
commodities group could enable Gupta’s group firm to avoid selling its aluminium
assets, known as Alvance, the report added.
According to the Financial Times, the potential deal could
result in more than $500 million of Alvance’s debt being refinanced by
Glencore.
Gupta is trying hard to save his business empire after the
collapse of Greensill Capital, its biggest lender. The group is also under
pressure after the Serious Fraud Office launched an investigation into
suspected fraud and money laundering at GFG, The Times report said.
In April, American Industrial Partners (AIP), a US private
equity group, bought most of the senior debt related to the Dunkirk smelter and
the Duffel rolling mill in Belgium, putting it in a leading position to buy the
assets.
Such a sale to AIP was supported by GFG’s chief investment
officer, Jay Hambro, but that Gupta was unhappy, a Bloomberg report said.
“GFG continues to focus on the restructuring and refinancing
of its businesses following the collapse of Greensill Capital. The Alvance
portfolio is performing well supported by strong market conditions,” GFG
Alliance said, but Glencore declined to comment.
Meanwhile, AFP on Friday (2) reported that ArcelorMittal
remains in the running for Liberty Steel’s key French activities, despite news
of a provisional deal with Germany’s Saarstahl.
The French Treasury had announced that an agreement in
principle has been signed between Liberty and Saarstahl for the purchase of
France’s Ascoval steelworks and Hayange rail plant.
“Liberty Steel Group has presented … a number of options to
secure the future of Liberty Steel France (LSF), which incorporates Liberty
Ascoval and Liberty Rail Hayange,” a GFG spokesman said.
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