Vedanta Limited (NSEI:VEDL) entered into a letter of intent to acquire 90% stake in Electrosteel Steels Limited (NSEI:ESL) on March 31, 2018. The consideration payable and the transaction fees and expenses will be paid using the existing cash resources. The transaction is subject to applicable regulatory requirements and as per the final terms approved by the National Company Law Tribunal.

As of April 1, 2018, the committee of creditors have approved the transaction. As of April 17, 2018, National Company Law Tribunal, Kolkata Bench approved the transaction. As of May 1, 2018, The National Company Law Appellate Tribunal directed that status quo be maintained in terms of the transaction.

A steering committee has been created comprises of majority nominees representing the financial creditors of Electrosteel Steels Limited and minority nominees from Vedanta Limited; and PricewaterhouseCoopers Private Limited has also been appointed as independent managing authority of committee. On May 14, 2018, the transaction was approved by the Competition Commission of India. As of May 18, 2018, the transaction is approved by the shareholders of Vedanta Resources plc (LSE:VED) parent company of Vedanta Limited.

As of May 30, 2018, National Company Law Appellate Tribunal allowed Vedanta Limited to acquire Electrosteel Steels Limited by depositing the upfront payment of INR 53200 million to the Committee of Creditors. Tom Mercer of Ashurst LLP acted as legal advisor for Vedanta Limited. Davis Polk advised Lazard & Co., Limited as sponsor to Vedanta Resources plc, parent of Vedanta Limited for the transaction.