Romania’s troubled steel mill Liberty Galati to seek buyer through direct talks

Romania’s steel mill Liberty Galati will be offered for sale through direct negotiations after two international auctions failed to attract a buyer, with three potential investors now expressing interest in the troubled former Sidex plant.

“Three investors are interested: Umbrărescu, Metinvest, and Jindal. We are waiting for the new evaluation made by Darian; we will start negotiations after we obtain the agreement on the plan amendment. On August 8-9, I estimate that we will be able to convene the creditors' meeting and in September enter into direct negotiations,” Remus Borza, concordat administrator of Liberty Galati together with CITR, told Ziarul Financiar.

The plant was initially offered for around EUR 700 million, with the asking price subsequently reduced to EUR 444 million, close to the liquidation value. No buyer emerged at the second auction on June 19, despite five companies having purchased the tender documentation. None submitted the required guarantee.

The three potential buyers include Ukrainian steelmaker Metinvest, controlled by billionaire Rinat Akhmetov, Romanian entrepreneur Dorinel Umbrărescu through construction group UMB Grup, and Indian steelmaker Jindal Steel. Jindal Steel chairman Naveen Jindal recently visited the Galati facility.

(Photo source: the company)