NSC mancom accepts Indian firm’s new offer

The National Steel Corp. (NSC) management committee (mancom) has "accepted" the new offer of Global Infrastructure Holdings Ltd. Inc. (GIHLI), paving the way for the rehabilitation of the debt-saddled steel firm.

GIHLI earlier offered to increase by P355 million its purchase price for NSC from the original P11.905 billion to P12.250 billion and agreed to release an upfront cash of P1 billion for the immediate rehabilitation of the steel firm once a deal is reached with the creditor banks.

NSC liquidator Danilo Concepcion said "the Mancom decided to accept the improved terms. It also agreed to submit to their respective boards the improved terms and conditions for approval."

Concepcion, however, said negotiations with GIHLI would still have to be finalized early next year.

"Initially, we are hoping to complete the negotiations before the end of the year. But since most of the banks’ boards are no longer meeting this year, we hope to finalize the negotiations early next year," Concepcion said.

Concepcion, however, refused to divulge the improved terms offered by GIHLI.

All he would confirm was that "definitely, there was an improvement in the terms, if not, the negotiations would not have been undertaken."

Concepcion said the Mancom agreed not to make any of the terms public since there are other bidders waiting for the lapse of the 90-day exclusivity period.

Because of the progressing talks, Concepcion said, the NSC Mancom decided to engage the services of experts to run tests on the machinery of the mothballed steep plant in Iligan City.

"GIHLI had requested another inspection of the plant," he said.

Industry sources said GIHLI still cannot afford to let its guard down since another bidder, the LNM Group, is still hoping to be able to present its own offer to the creditor banks after the 90-day exclusivity period ends.

The LNM Group has said it is willing to match whatever offer GIHLI makes.

The LNM Group claims that it is bigger than GIHLI and has a proven global track record of acquiring and rehabilitating troubled steel firms.