Search the Internet          Tips  Sites: Finance, Investment

Govt invites EoIs for 29% in Nalco

BS Economy Bureau in New Delhi

The government has invited expressions of interest for the sale of 29.15 per cent equity along with management control of aluminium major National Aluminium Company Ltd.

The interested bidders, which include international giants like Alcan, Alcoa, Pechiney, Broken Hill Properties and Rio Tinto, have been asked to file their EoIs by September 15.

As per the advertisement put up on the ministry of divestment website, companies or groups bidding for Nalco need to have a minimum net worth of $250 million. To ensure wider participation, the government has decided against limiting the bidders from the metals or aluminium sectors.

The government has also set in motion the process for the public offer of 10 per cent of the company's shares, followed by the American depository receipt issue of 20 per cent.

As per the schedule drawn up for the divestment of the company, the three-phase process has to be completed back-to-back. Post divestment, government holding in the company will fall to 26 per cent.

The process of strategic sale typically took six to eight months, while the public issue took about four months, a senior official of divestment ministry said.

In the case of Nalco, the domestic issue would be completed a couple of months before the strategic sale, he added.

"The government decided that having the public offer just before the strategic sale would enable the government to get the best value for the company as the investors in the domestic float would be attracted by the open offer after the strategic sale," the official said.

The ABN Amro-Rothschild-Enam combine, which was advising the government on the sell-off, had started making presentations to over 15 national and international companies to get them interested in the company, he said.

Powered by

ALSO READ:
The Divestment Development
More Money Headlines