Nithia Capital and CarVal Investors complete acquisition of Uttam Galva Metallics Limited and Uttam Value Steel Limited

Mumbai, 05th January, 2021:
Nithia Capital, a global distressed alternative asset manager and advisors, and CarVal Investors, a global alternative investment manager focused on distressed and credit-intensive assets, announced that they have completed the acquisition of Uttam Galva Metallics Limited (UGML) & Uttam Value Steel Limited (UVSL) (together Uttam)through their Singapore-based Joint Venture Holding Company, Wardha Steel Holdings Pte Ltd for a total purchase consideration of in excess of INR 2000 Crores.

Dr Johannes Sittard, Chairman and Founding member of Nithia Capital, has been appointed Chairman of Wardha Steel and Jai saraf, Founder and CEO of Nithia Capital, has been appointed Chairman of Uttam.

Commenting, Jai Saraf, Founder and CEO of Nithia Capital said, “The acquisition of Uttam is an important and strategic step for Nithia Capital. Nithia envisions to create a consolidated steel operating platform of up to two million tons of steel production per year in India through acquisition and organic growth. We have been looking at multiple steel acquisition opportunities in India over the last few years and we are confident that we will continue to grow and build further on the success of Uttam. We consider India to be the engine of growth for world steel for the next 20-25 years, and it is our intention to actively participate in this process.”

“We are also delighted to be embarking on this together with CarVal, with whom we have developed a trusted and strong relationship. Together we are confident that we will create significant value for all stakeholders, our employees and local communities. This transaction also demonstrates success of the Insolvency and Bankruptcy Code, a genuinely progressive reform”, added Jai Saraf.

Nimrod Wei, Managing Director, CarVal Investors said, “Our aim always is to identify unique value investment opportunities across the globe where we can leverage our proprietary research and our investment experience across cycles and geographies to create value for all the stakeholders. We are pleased to be working with our partner, Nithia Capital, on the successful acquisition of Uttam and extend our sincere thanks to the Indian bank lenders led by State Bank of India and Union Bank of India.”

Rajib Guha, Partner at Nithia Capital said, “This transaction has been a great learning curve for us in doing business in India. In the process, we have been successful in fostering stronger ties with local institutions and businesses. We are thankful for the support and cooperation we received from parties to bring this to a successful conclusion. The current bankruptcy process is working and is evolving quickly. We hope to achieve further resolutions for banks going into next year.”

Uttam is an integrated mid size flat steel producer with annual capacity to produce c. 0.7 million tons of crude steel. The facilities are strategically located in the centre of India near Nagpur with captive railway siding, enabling reach to all major markets countrywide and proxility to Iron ore. The plan of Nithia Capital and CarVal is to increase Uttam’s primary steel making capacity by 50% in the immediate future by completing partially completed projects in a timely and cost effective manner.

About Nithia Capital:
Nithia Capital is a leading alternative investment manager with an expertise and track record in transforming underperforming acquired facilities into world-class competitive, operationally and financially healthy and sustainable businesses. Backed by a globally experienced team looking to build an industrial portfolio in emerging markets, Nithia Capital has the ability to bring in financial, operational and commercial experience to heavy asset backed industries.

About CarVal Investors:

CarVal Investors is a global Alternative Investment Manager with a total AUM of in excees of US$10 billion. CarVal has 30+ years of global track record in opportunistic and distressed credit investment, having invested US$113 billion in 5,320 transactions in 79 countries.