Calcutta, Aug. 16: Global Steel Holdings Ltd, a special purpose vehicle (SPV) controlled by Pramod and Vinod Mittal of Ispat Industries, has bought out Finmetals Holding AD of Bulgaria. Following the acquisition, Global Steel has reshuffled Kremikovtzi’s management appointing Pramod Mittal as the chairman of its supervisory board and Alok Gupta as the executive director.

Global Steel has paid $150 million to buy out the Sofia-based Finmetals, which holds a 71-per cent stake in Bulgaria’s largest steel maker, Kremikovtzi.

Investment banker Merrill Lynch was the adviser for the $150-million deal. Global Steel has mobilised funds from private placement of shares and loans against the security of the Bulgaria plant having a production capacity of 2.2- million tonnes.

Global Steel will hold 71 per cent stake in Kremikovtzi through Finmetals, while the government of Bulgaria owns a 25.29 per cent stake in the steel mill. The remaining shares are owned by individual shareholders.

The acquisition will give Ispat group access to the lucrative European Union market as Bulgaria is going to enter the EU in 2007.