Neelachal Ispat JV partners in share-purchase pact with Tata Steel arm

NINL is a joint venture of MMTC, NMDC, BHEL, MECON and 2 Odisha government PSUs – OMC and IPICOL

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NINL | Tata Steel | Neelachal Ispat Nigam Ltd

The government on Thursday said Neelachal Ispat Nigam Ltd’s JV partners signed a share purchase agreement (SPA) with Tata Steel Long Products, paving the way for NINL privatisation.

NINL is a joint venture of MMTC, NMDC, BHEL, MECON and 2 Odisha government PSUs – OMC and IPICOL.

“SPA signed today by JV partners of NINL with Tata Steel Long Products. The disinvestment transaction now moves to the closing stage,” Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey said in a tweet.

Tata Steel Long Products emerged as the highest bidder with Rs 12,100 crore for the acquisition of the 93.71 per cent equity stake of NINL.

Meanwhile, state-owned miner NMDC said it has executed “definitive agreements” for the sale of its entire equity in NINL to Tata Steel Long Products Limited.

“We wish to inform you that the company has executed the Share Purchase Agreement and Escrow Agreement (definitive agreements) for sale of its entire equity holding of 10.10 per cent in NINL to TSLP, the successful bidder selected through the two-stage auction procedure involving a competitive bidding process, run under the aegis of Department of Disinvestment & Public Asset Management (DIPAM),” NMDC said in a regulatory filing.

Completion of the transaction would require fulfilment of certain actions contemplated under the definitive agreements and the transfer of shareholding of the company in NINL to TSLP will be completed subsequently, it added.

Last month, Tata Steel arm accepted a letter of award (LoA) for the acquisition of a 93.71 per cent stake in NINL.

In January 2020, the Cabinet had approved strategic disinvestment of equity shareholding of MMTC (49.78 per cent), NMDC (10.10 per cent), MECON (0.68 per cent), BHEL (0.68 per cent), IPICOL (12.00 per cent) and OMC (20.47 per cent) in NINL.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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