Liberty House Group expects Tata Steel Ltd to set an end of May bid deadline for the sale of its UK steel assets and said his firm wouldn't need financial backers to make an offer.
Liberty House has a balance sheet of more than $1 billion and has no long-term leverage, founder Sanjeev Gupta said at the FT Commodities Global Summit in Lausanne, Switzerland on Wednesday.
The private company has been approached by potential financial backers, but doesn't necessarily need to borrow to fund an acquisition, he said.
Tata Steel said in March that it plans to sell all its unprofitable UK operations, putting thousands of jobs at risk, and is still trying to negotiate the sale of its Port Talbot plant in South Wales. European steelmakers have been hit by prices that have tumbled more than 50 per cent since 2008 amid a global glut and flood of cheap Chinese exports.
The UK government, which is trying to combat the crisis in its domestic steel industry, would consider co-investing with potential buyers on commercial terms, Business Secretary Sajid Javid said in Parliament on Monday. Business Minister Anna Soubry on Tuesday said there has been serious interest in the plants and that the state is looking at all options.
Other companies, who are most likely "financial in nature," are expected to join the process, Gupta said, adding that he isn't aware of any specific bidders.
Gupta said the government should allow it to buy Tata's UK assets because Liberty House has a strong track record and connections to international markets. The company has already agreed to buy Tata plants in Scotland.
The Financial Times reported late Tuesday that Tata was planning a May 28 deadline to negotiate a sale.
