Sanjeev Gupta appears to be on a deal-making spree, now having approached Stemcor, one of UK's largest independent steel traders, from investors including US private equity house Apollo. Sources in the know said Gupta's GFG Alliance, which has been gobbling up factories, smelters and mines around the world, has shown interest in acquiring the trading and distribution company. A bid submitted this month included a range of potential valuations, with the lowest just shy of Stemcor's net asset value of $150 million.
Any deal would add to GFG Alliance's industrial empire that has expanded rapidly by acquisition in the past few years to reach turnover of around $15 bn, with over 14,000 employees. Stemcor said it was “evaluating options for the ideal future ownership structure for the group.” They also said that they have been approached by a number of parties, and have appointed advisers. The largest single shareholder is the US private equity firm Apollo, which along with other funds, holds more than 70 per cent of the group.
Stemcor was founded by Hans Oppenheimer, late father of UK Labour MP Margaret Hodge, in 1951. It is now one of Britain's biggest privately owned companies with a revenue of £5 bn. However, the Oppenheimer family has no stake. The company had defaulted on a loan during a slowdown in commodities markets, teetering on the brink of collapse. It was however, rescued by its lenders in a debt-for-equity swap in 2015.
