Birlas may bid for Nalco through Hindalco
Offer open for a JV with a foreign company
The Aditya Birla group is likely to bid for Nalco through flagship company Hindalco. The plan is to prevent a situation whereby if the bid is successful, management control of National Aluminum Co (Nalco) is not far removed from Hindalco. The mandatory open offer would cost over Rs. 30 billion.
Earlier the plan was to bid through Indal, a subsidiary of Hindalco. Hindalco hiked its stake in Indal to over 94 per cent from 74 per cent, making an open offer. The initial phase of Nalco`s divestment includes a strategic stake (29.15 per cent) sale, to be followed by the mandatory open offer of 20 per cent, which will give the strategic partner 49.15 per cent stake.
Meanwhile, Rus-Al, a Russian aluminum major, has expressed interest in buying into Nalco. Deri Paska, head of Rus-Al, will be a part of the high level delegation accompanying President Vladimir Putin during his India visit. The trip is a strong indication that the two governments are looking forward to a possible deal in this matter.
