Stemcor owns 73% in Aryan Mining via Stemcor Iron Ore Holdings which has 27% stake and a Cyprus co holding another 46%
With Stemcor affectively scuttling efforts of Tata Steel to buy out its demerged iron ore assets in India, the assets have lost its last remaining lifeline and may soon go into liquidation.
Aryan Mining and Trading Corp, controlling the iron ore processing plants in Odisha, part-owned by Stemcor and partly by Indian shareholders, has now approached National Company Law Tribunal to prevent Stemcor from disrupting the asset sale and avoid liquidation.
Saraf Group, a substantial minority shareholder of Aryan Mining, has claimed before NCLT that while they have freed Brahmani from the lenders by paying off their dues, Stemcor is trying to push the company towards liquidation.
DNA Money on October 11 reported about Tata Steel’s pact with Aryan Mining hitting a roadblock following a Calcutta High Court order.
After the publication of the report, Tata Steel on the same day told exchanges that it is no longer pursuing the buyout and its pact has turned void.
“The transaction has not been completed with the long stop date…In absence of clear approvals, the shares couldn’t, in our opinion, be transferred with a clear title,” Tata Steel had said on Wednesday regarding its earlier pact to acquire 100% of Brahmani River Pellets, the owner of the Odisha plants, from Aryan Mining and Trading Corp and other companies in the Moorgate Industries Group at an enterprise value of Rs 900 crore.
Why Aryan Mining, which owns 99.99% of Brahmani, has now gone to NCLT against its own subsidiary?
The British mineral trading major owns 73% in Aryan Mining, via Stemcor Iron Ore Holdings which has 27% stake and a Cyprus-registered entity holding another 46%.
The balance 27% stake in Brahmani is held by Kolkata-based Sanjay Saraf and other entities.
With a majority control over Aryan, Stemcor has a shareholders’ agreement where a clause gives it an absolute right to take all decisions in relation to Brahmani.
Citing this clause, Stemcor last week got a stay on Aryan Mining trying to sell the assets to suitors.
Following this ruling, Tatas cancelled the pact with Aryan on October 11.
Aryan has now approached NCLT alleging “oppression and mismanagement” under Section 241 and 242 of Companies Act against Brahmani citing a governance pact for Brahmani which states that all the stakeholders are desirous of hiving off the assets to cut losses.
Accepting the petition of Aryan Mining, NCLT has agreed with and directed the continuation of the stay order of Calcutta High Court.
“There shall be an interim order directing the parties to maintain status quo about the management and control of Brahmani. Brahmani shouldn’t create any third-party interest or encumbrance on any of its assets and properties,” NCLT has said.
BIG ROW
- Stemcor owns 73% in Aryan Mining via Stemcor Iron Ore Holdings which has 27% stake and a Cyprus co holding another 46%
- Aryan Mining controls the iron ore processing plants in Odisha, part-owned by Stemcor, rest is owned by Indian shareholders
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
 "Tata Steel")
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}