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The deep sleep of unions and politicians hands SIDEX on a silver platter to an adventurer

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Sanjeev Gupta, who wants to become the owner of SIDEX, is running a cosmetic image campaign to win the goodwill of the trade unions, Romanian authorities and politicians.

To prevent what happened at the steelworks in Ostrava, where his promises triggered a major collision with the trade unions and politicians in the Czech Republic. The Steelworkers' Unions in Ostrava, which also represents 6,000 employees, same as unions in Galaţi, are worried that the takeover will "permanently and irreversibly destroy the plant" and therefore asked for a "detailed plan and firm commitment to invest in the factory" according to the Sunday Times, an important UK newspaper, the Indian’s adoption country. Today, we present what other important publications have written about the Gupta family business. One can find out about unpaid debt to suppliers, bankrupt hedge funds, insurers suspending policies, and many other things we all need to know before losing such factory and, together with it, the heart of a city.

As if erupting from the optimism of the Romanian Centenary celebrations, we have witnessed the past few days a laudatio given by a central television to Sanjeev Gupta, who is in the race to take over SIDEX Galati.

The interview with Sanjeev Gupta, which seems to be the type of masked advertising, reiterates and launches new promises with a maddening enthusiasm. We hear (again) about the over 300 million euros that will be invested for the 50% increase in the production capacity of SIDEX Galati and, in order not to be abandoned in everyday banality before the holidays, the businessman is raising with the promise to engage in the construction of a motorway in a public-private partnership.

Practically, Gupta has not put his foot well in Galati, has not proven yet he can maintain and develop the factory, but is already thinking about the next promise: infrastructure.

Our duty is to remind him that even by today his companies did not answer the question about the investment promised to Oltenita: 200 million euros announced for the construction of "the most modern steelwork in Europe" melted as discreetly as they never existed before.

In an attempt to establish the exact facts, we have documented what remains of the promises: a lavender and goji plantation. Is this the fate of Galati? Why should we all believe that a highly controversial businessman in the international financial press will be performing in Galaţi, a much more complicated business than Oltenita. Or, in other words, if a lavender rose in Oltenita instead of a steel plantation, what should we expect in Galati? A bamboo plantation?

These are questions that should be asked by all those involved at the government level, perhaps at the CSAT level, where the final approval for this transaction will be given.

In his speech, Sanjeev Gupta fails to bring arguments to clear all the question marks but, moreover, surrounds us in the spell of promises that sound good for Romanians: highways, the national obsession of the last 30 years. We have to admit, infrastructure is a sensible side for the Romanians, and anyone who promises this has every chance of being believed, rather from the desire to be lying nicely rather than credibility.

Promises, a marketing strategy

The habit of jumping from one promise to another is characteristic of this group of businessmen, as we will show you, those who want to buy SIDEX Galati have great problems in supporting their investments so far, let alone take another responsibility.

Unfortunately for the people of good faith who are still working in Galati, we hope that it will not be too late when they understand that neither the highway will come to the gate of the factory nor will their workplace exist, because Sanjeev Gupta does not say all the truth.

Such as the fact that he is already posing as owner of SIDEX Galaţi, although the European Commission is currently conducting an analysis process for the buyer selected by ArcelorMittal, and no decision has been taken to validate his ownership of SIDEX.

As part of this, the European Commission wants to ensure that the future buyer fulfils a number of predefined criteria designed to ensure that he has the right incentives to continue the operation of the plant. The buyer will have to demonstrate to the Commission that it has the capacity and incentives to exploit the long-term mix. In other words, selling the plant to a buyer who would consider closing it would not be an acceptable solution, "said European Competition Commissioner Margrethe Vestager.

In other words, the seriousness, financial stability, buyer's experience in the steel industry, his real intentions and the ability to complete will be investigated.

Sanjeev Gupta tells us only what Forbes magazine has written, who called him the “most daring investor in the world last year”, but he does not tell us what the international press has written over the past few months about his businesses.

It is our duty to present to you the rest as seen by international publications whose reputation and intent even Sanjeev Gupta can not question.

Financial Times: "Saviour of steel" Sanjeev Gupta asks rivals for loans"

These are the promises made by Gupta in Romania, but to understand what are we dealing with, we have studied the UK press, where he comes from and where he is best known. There is an inflation of articles about the possible future investor in Galati, but we have selected just a few that have touched the most important aspects. On October 19, 2018, the Financial Times ironically titled: "Steel Savior” Sanjeev Gupta asks rivals for loans." The article also tells how the billionaire came to this solution: "Sanjeev Gupta, the so-called "steel saver”, "addressed merchant rivals for loans after one of his main financial supporters, Swiss asset manager GAM, entered in difficulty".

Financial Times: GAM returns billions of dollars to customers after suspending a manager who has invested in GFG (Gupta - n.a.)

GAM is a Swiss investment fund, about which we have already written in the Gupta family business survey, which takes the first steps towards liquidation. Fund issues are surprising for international financial analysts, but they seem to be intimately linked to Gupta's business, which has borrowed no less than $ 2.8 billion from the Swiss fund. The Financial Times writes that it will be difficult for GAM to liquidate everything. If it was easy for them to sell some "good" bonds, it would probably be very difficult for them to get away with the securities. Most of these hard or impossible to sell securities were generated by the Gupta group.

Bloomberg: "The GAM investigation will reanalyse business with the industrialist (Gupta-n.a)"

The broker who helped him access the money, investigated.

The crisis was triggered by an anonymous employee who announced the management and control bodies of the capital market that the practices of investment manager Tim Haywood are not in compliance with the regulations. GAM's internal investigation pointed out that Haywood did not exercise enough diligence in checking certain investments, signed contracts alone, even when it needed two signatures, did not internally share important analysis documents, breached the gift policy and protocol for that he did not ask for prior approval, he used his personal email for work and more.

As the Evening Standard notes on September 25, 2018, "these harmful practices are linked to private debt, very difficult to sell, issued by a company named GFG Alliance, controlled by the steel tycoon Sanjeev Gupta," according to Bloomberg . The concern is also supported by the Financial Times, who wrote on November 9, 2018, that "there are questions about how he managed to finance his shopping spree. One of the sources of funding, according to public documents, was GAM, which held a significant share of at least $ 2.8 billion in financing for Mr Gupta's companies. " Because of this situation, GAM shares collapsed by over 66% and more bad news may be coming as the investigation is just at the beginning.

Momentul care a ridicat sala in picioare la Romanii au Talent! Mihai Petre nu a mai putut sa se abtina! Ce a urmat!

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Tag-uri: sidex, gupta

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