MSTC concludes Ferro Scrap Nigam sale to Japanese co, transfers mgmt control
This story was originally published at 19:16 IST on 21 January 2025
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NEW DELHI – Public sector company MSTC Ltd. on Tuesday concluded the sale of its entire stake in Ferro Scrap Nigam Ltd. to Japan's Konoike Transport Co. Ltd. "A new board, led by the strategic partner, takes charge of FSNL," Divestment Secretary Arunish Chawla said in a post on social media platform X, formerly Twitter.
MSTC and Konoike Transport had signed the share transfer agreement to seal the deal in October, after the government approved the strategic stake sale to the Japanese conglomerate. It had submitted a financial bid worth INR 3.2 billion to acquire the stake in Ferro Scrap Nigam.
The government had invited initial bids for the divestment of Ferro Scrap Nigam in 2022. It finally received two financial bids from qualified bidders, of which it selected the higher of the two bids. The other qualified bidder was Indic Geo Resources Pvt. Ltd., a subsidiary of Indian steel manufacturer Chandan Steel Ltd.
The Japanese company is listed on the Tokyo Stock Exchange. Konoike's steel division is a 140-year-old segment of the company. 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.
Incorporated in 1979, Ferro Scrap Nigam was a wholly-owned subsidiary of MSTC under the administrative control of the steel ministry. The Cabinet Committee on Economic Affairs had given its in-principle approval for the strategic sale of Ferro Scrap Nigam in 2016.
On Tuesday, shares of MSTC closed 3% lower at INR 617.20 on the National Stock Exchange. End
Reported by Krity Ambey
Edited by Tanima Banerjee
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