Informist, Thursday, Sep 19, 2024

NEW DELHI – The government approved the sale of MSTC Ltd's entire stake in Ferro Scrap Nigam Ltd to a Japanese conglomerate Konoike Transport Co Ltd, the finance ministry said today in a release. Konoike Transport had submitted a financial bid worth 3.2 bln rupees. Incorporated in 1979, Ferro Scrap Nigam is a wholly-owned subsidiary of MSTC Ltd, under the steel ministry.

Konoike Transport 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," the ministry said in a release. "The division provides comprehensive services ranging from raw material acceptance to manufacturing processes, slag treatment, scrap processing, examination, packaging and delivery of steel products, supporting customers' operations."

The government had invited initial bids for the disinvestment of the metal and mining company in 2022. "Six interested bidders expressed their interest, out of which five bidders were shortlisted as qualified bidders. Post-shortlisting, qualified interested bidders conducted due diligence on the company," the release said.

The government had finally received two financial bids from the qualified bidders, out 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.

The government will soon sign the share purchase agreement to officially conclude the stake sale process, as per the release. Ferro Scrap Nigam is a 100% subsidiary of MSTC under the administrative control of the steel ministry. The Cabinet Committee on Economic Affairs had granted its in-principle approval for the strategic sale of Ferro Scrap Nigam in 2016.

Shares of MSTC Ltd today closed 1.4% higher at 722.85 rupees on the National Stock Exchange. End

Reported by Krity Ambey

Edited by Akul Nishant Akhoury

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

Informist Media Tel +91 (11) 4220-1000

Send comments to feedback@informistmedia.com

© Informist Media Pvt. Ltd. 2024. All rights reserved.