Cabinet okays sale of Nalco strategic stake
51 per cent equity to be sold to a strategic partner
The government has decided to start the process for strategic sale and public offering for divesting a total of 59.15 percent equity in National aluminium Company (Nalco) and has cleared a proposal for privatisation of Manganese Ore India Ltd. (MOIL). The decision was announced at the meeting of the Cabinet Committee on Disinvestment (CCD), headed by Prime Minister Atal Behari Vajpayee.
Terming the CCD meeting as ‘‘very positive’’, Shourie told reporters that in MOIL, which is worth Rs 1021.3 million and where the government has 81.57 per cent stake, 51 per cent equity will be sold to a strategic partner. Of the balance, 4.57 per cent will be offered to the employees while the government will retain 26 per cent equity.
Shourie said the MOIL employees had expressed an interest in bidding for the shares. ‘‘The proposal has been considered. But they will have to float a special purpose vehicle and satisfy all criteria,’’ he said.
In Rs 23,860 million Nalco, the CCD decided to sell 10 per cent shares in the domestic market, 20 per cent through ADR and 29.15 per cent will be offered to a strategic partner. The government would retain 26 per cent after offering two per cent to the employees. ABN-AMRO Rothschild/Enam has been appointed as Global Coordinator-cum-Adviser while J.P. Morgan / ICICI Securities are joint global coordinators.
