3-year lock-in period for Nalco partners proposed by Govt
The government plans to propose a three-year lock-in period for transfer of shares by the strategic partner, subsequent to privatization of National Aluminum Company (Nalco). The lock-in period would mean the strategic partner will not be able to transfer the shares to a third party for the duration of the specified period.
A provision to this effect will be incorporated in the shareholders agreement proposed to be circulated to prospective bidders vying for government equity. The first draft of transaction documents for Nalco would be circulated to them this week. The government has short-listed nearly 15 prospective bidders, including Sterlite Industries and Hindalco, for strategic sale of National Aluminium (Nalco). It would offer 29 per cent to a strategic partner, while 20 per cent will be offloaded through the ADR route, and the rest will be offered to retail investors.
