New Delhi, Nithia Capital, a global distressed alternative asset manager and CarVal Investors, a global alternative investment manager focused on distressed and credit-intensive assets, announced that they have completed the acquisition of Uttam Galva Metallics Limited (UGML) and Uttam Value Steel Limited (UVSL) (together Uttam) through their Singapore-based Joint Venture Holding Company, Wardha Steel Holdings Pte Ltd for a total purchase consideration of in excess of Rs 2,000 crore.

Johannes Sittard, Chairman and Founding member of Nithia Capital, has been appointed Chairman of Wardha Steel and Jai saraf, Founder and CEO of Nithia Capital, has been appointed Chairman of Uttam.

Commenting, Jai Saraf, Founder and CEO of Nithia Capital said, "The acquisition of Uttam is an important and strategic step for Nithia Capital. Nithia envisions to create a consolidated steel operating platform of up to two million tons of steel production per year in India through acquisition and organic growth. We have been looking at multiple steel acquisition opportunities in India over the last few years and we are confident that we will continue to grow and build further on the success of Uttam".

Nimrod Wei, Managing Director, CarVal Investors said, "Our aim always is to identify unique value investment opportunities across the globe where we can leverage our proprietary research and our investment experience across cycles and geographies to create value for all the stakeholders. We are pleased to be working with our partner, Nithia Capital, on the successful acquisition of Uttam and extend our sincere thanks to the Indian bank lenders led by State Bank of India and Union Bank of India."

Rajib Guha, Partner at Nithia Capital said: "This transaction has been a great learning curve for us in doing business in India. In the process, we have been successful in fostering stronger ties with local institutions and businesses. The current bankruptcy process is working and is evolving quickly. We hope to achieve further resolutions for banks going into next year."

Uttam is an integrated mid size flat steel producer with annual capacity to produce 0.7 million tons of crude steel. The facilities are strategically located in the centre of India near Nagpur with captive railway siding, enabling reach to all major markets countrywide and proxility to Iron ore. The plan of Nithia Capital and CarVal is to increase Uttam's primary steel making capacity by 50 per cent in the immediate future by completing partially completed projects in a timely and cost effective manner.