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Essar Global investors, others express intent to buy Essar Algoma

Published 2016-07-12, 01:39 p/m
© Reuters. Essar Global investors, others express intent to buy Essar Algoma

July 12 (Reuters) - A group that includes shareholders of
Essar Global said it signed a letter of intent with a local unit
of the United Steelworkers Union to negotiate a deal to buy
Essar Steel Algoma Inc ESSRGE.UL for about $900 million.
Essar Global said in a statement last month that it did not
support a deal to sell Essar Steel Algoma's assets to a
consortium formed by private equity firm KPS Capital Partners.
Algoma, bought nearly a decade ago by Indian energy and
resources conglomerate Essar Global, had put itself up for sale
while operating under creditor protection.
Ontario Steel Investment Ltd, the group that includes
shareholders of Essar Global, said on Tuesday it would assume
Algoma's pension and benefit liabilities as part of the
agreement.
Ontario Steel said it would also pay outstanding taxes owed
to the city of Sault Ste. Marie, where Algoma is based, within
six months of a change in ownership.

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