LNM Group continues to pursue bid for Nat’l Steel

The LNM group will continue to pursue its bid for the National Steel Corp. (NSC) even after reports that majority of NSC’s creditor-banks have accepted the improved offer of Global Infrastructure Holding Ltd. (GIHL).

LNM Holdings marketing manager Eric Tierie said yesterday that LNM is now willing to translate its offer to more outright cash instead of a profit-sharing scheme.

LNM would offer 10 percent more than the P13.25 billion offer of GIHL or P14.575 billion with the amount payable in less than eight years and P2.5-billion payable upfront.

"LNM still has not been given a chance to present its own offer for NSC even after the exclusively period with GIHL has expired," Tierie said.

Tierie expressed frustration over the lack of transparency and clarity over the bidding procedure.

Tierie said they are confused why the banks are still not willing to entertain LNM now that the exclusivity period has lapsed.

Based on LNM’s calculation, it expired about two weeks ago starting from the time the grant of the exclusivity was announced in November.

LNM, Tierie revealed, is also studying the possibility of getting in touch with the Malaysian owners of NSC to present their superior offer.

Tierie stressed that as far as LNM is concerned, their bid for NSC is not over until "the plant is officially sold to Global" and "if they are successful in rehabilitating the plant over the next eight years."

However, Tierie acknowledged that while LNM will stay around "life goes on and alternatives come up."

He added that, "I am sure we can find other ways to satisfy our ambition in the region."

LNM, Tierie said, is not as interested in starting up a completely new steel plant in the country as it would be "more expensive."