MSTC inks pact to transfer stake in Ferro Scrap Nigam to Japanese co
This story was originally published at 21:46 IST on 24 October 2024
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NEW DELHI – Public-sector company MSTC Ltd. has signed an agreement with Japanese conglomerate Konoike Transport Co. Ltd. to transfer its entire stake in Ferro Scrap Nigam Ltd. to the latter. The government had approved the strategic sale of the metal and mining company to Konoike Transport in September.
"The transaction now moves to the concluding stage," Finance Secretary Tuhin Kanta Pandey said Thursday in a post on social media platform X. Konoike Transport had submitted a financial bid worth INR 3.2 bln rupees to acquire a stake in Ferro Scrap Nigam.
The Japanese company is listed on the Tokyo Stock Exchange. Konoike's Steel Division is a long-established segment of the company, with over 140 years of experience in steelworks operations. It provides comprehensive services ranging from raw material acceptance to manufacturing processes, slag treatment, scrap processing, and examination, packaging, and delivery of steel products, supporting customers' operations.
The government had invited initial bids for the disinvestment of Ferro Scrap Nigam in 2022. It finally received two financial bids from qualified bidders, of which it selected the higher bid. The other qualified bidder was Indic Geo Resources Pvt. Ltd., a subsidiary of Indian steel manufacturer Chandan Steel Ltd.
Incorporated in 1979, Ferro Scrap Nigam was a wholly-owned subsidiary of MSTC Ltd. under the steel ministry. The Cabinet Committee on Economic Affairs had given in-principle approval for the strategic sale of Ferro Scrap Nigam in 2016.
On Thursday, shares of MSTC Ltd closed almost 1% lower at INR 668.10 on the National Stock Exchange. End
Reported by Krity Ambey
Edited by Rajeev Pai
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