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Vol 4 (AAC) No 4

Published 1st February 2011


Zimbabwe

What’s mine is mine

In November 2010, India’s Essar group (through its Mauritian subsidiary) announced it would take a 54% stake from the government of Zimbabwe in its long-troubled iron and steel works Zisco. This came as a surprise: Indo-South African group Mittal Arcelor had earlier been believed to be the front-runner (AAC Vol 4 No 2). The deal is unattractive to investors due to Zisco’s substantial debt, and Essar is expected to pay about US$65 million for the stake. Analysts suggest that at least $600 mn. is needed to revitalise Zisco, which stopped operations in 2008, with at least $300 mn. in debt.

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