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Price bids for SCI in Aug; privatisation in 3-4 months

The government is likely to invite price bids for selling its 51 per cent stake in Shipping Corporation of India in August and the entire privatisation process is likely to be completed in 3-4 months.

"They (companies in race for acquiring the government stake) have completed due diligence and we expect to wrap up the entire privatisation in next 3-4 months," Shipping Minister Ved Prakash Goyal told a news conference in New Delhi.

While Goyal refused to say anything further, sources said six companies remained in the fray for SCI, price bids for which are likely to be invited in August.

Among the six companies in fray are Essar Shipping, Great Eastern Shipping Company, Iffco-Kribhco, Aban Loyd- Qatar Shipping Company and Malaysia International Shipping Corporation.

Sources said the security clearance of the bidders remained while foreign bidders have been asked to float a special purpose vehicle incorporated in India which should be owned and majority-controlled by Indians.

This would ensure that foreign participation in SCI through the SPV would not exceed 25 per cent of the paid-up capital of the company, sources said.

Besides, the acquisition of further 20 per cent shares from the stock market through an open offer would be through the SPV only.

Currently, the government holds 80.12 per cent stake in SCI, out of which 51 per cent is being divested to a strategic partner.

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