The draft transaction documents for sale of 51 per cent stake in Engineers India Ltd to a strategic partner have been finalised.
According to official sources, the draft transaction documents for EIL, which includes shareholders and share purchase agreements were finalised on Wednesday, and it would now be taken to the next meeting of the Cabinet Commitee on Divestment.
This would also pave the way for invitation of financial bids.
The government, which currently owns 90.39 per cent stake in EIL, has decided to divest 51 per cent of its shareholding in favour of a strategic partner. An additional 10 per cent stake would be offered to the employees at one-third of market price or bid price whichever is lower.
Over half a dozen companies are eyeing stake in the engineering consultancy PSU including ONGC-BHEL combine, GAIL-L&T combine, Reliance, Essar, Tisco, Warburg Pincus, Jindal and Russia-based Sun Securities.
Meanwhile the ministry of petroleum is believed to have proposed drawing Rs 310 crore (Rs 3.1 billion) special dividend from reserves of EIL.
