Birlas begins Nalco due diligence
Divestment dept to proceed with the process
One of the Indian bidders, the Aditya Birla Group will be the first to initiate a due diligence exercise of Nalco. There are 12 foreign companies in the race. Though the government has opposed the move to privatize Nalco, the disinvestment department has decided to proceed with the process inviting prospective bidders to commence with plant visits.
Hindalco, the largest aluminum company in the country is still evaluating who to team up with for Nalco. The group has kept its option of tying up with a foreign partner open, which they feel is necessary due to the huge outgo the buy would involve. The acquisition of Nalco`s 49 per cent stake – 29 per cent from the government and another 20 per cent under the mandatory open offer – could require an outgo of more than Rs. 30 billion.
The government has set December as the target month for the strategic sale.
