Mumbai, Jan 5 (PTI) Distressed asset managers Nithia Capital and CarVal Investors on Tuesday announced the completion of their Rs 2,000-crore acquisition of Uttam Galva Metallics and Uttam Value Steel.

The acquisition was done by the two entities' Singapore-based joint venture Wardha Steel Holdings, as per a statement.

Johannes Sittard, chairman and founding member of Nithia, has been appointed as chairman of Wardha Steel, while Jai Saraf, founder and chief executive of Nithia, has been appointed chairman of Uttam.

Saraf said Nithia aspires to create a consolidated operating platform of up to 2 million tonnes 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," he added.

The acquisition of the Uttam group companies happened through an insolvency process steered by the National Company Law Tribunal (NCLT).

Both the companies together had reportedly over Rs 7,000 crore of claims which were admitted by the resolution professional. State Bank of India and Union Bank of India were the lead bankers.

Uttam is an integrated mid-sized flat steel producer with annual capacity of 0.7 million tonnes of crude steel. Its facilities are located near Nagpur with captive railway siding, enabling reach to all major markets countrywide and proximity to Iron ore, the statement said.

Nithia Capital and CarVal plan to increase Uttam's primary steel-making capacity by 50 per cent in the immediate future by completing partially completed projects in a timely and cost-effective manner, it added.

"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," CarVal's Managing Director Nimrod Wei 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," Nithia's Partner Rajib Guha said, adding the fund hopes to achieve further resolutions for banks in the future.

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