IMG Begins Process for Residual Stake Sale in Hind Zinc, Balco - The New Indian Express

IMG Begins Process for Residual Stake Sale in Hind Zinc, Balco

Published: 08th February 2014 06:00 AM

Last Updated: 08th February 2014 01:33 AM

An inter-ministerial group on Friday started the process of valuation of public sector enterprise Hindustan Zinc Ltd (HZL) and Balco for residual stake sale of these two companies. The process has been initiated so that the stake sale can be completed by March end or before the close of this financial year. The government holds 49% stake in Balco and 29.5% in HZL.

Arvind Mayaram
The government is looking at stake sale of different profit making PSU companies before March in its bid to shore up the disinvestment target of `40,000 crore that it had set for itself.

“We are in the process of valuing the two companies. The IMG discussed the issuance of Request For Proposals (RFP) for valuation of HZL and Balco,” a senior MoF official said.

“We are working very hard to make it happen by March,” Divestment Secretary Ravi Mathur said.

The Union Cabinet had last month cleared stake sale in HZL through auction route while a decision on Balco is yet to be taken.

During 2001-03, the government had sold majority stakes in the two erstwhile PSUs to the Vedanta group.

At present, London-listed Vedanta holds 64.92% stake in HZL and 51 per cent in Balco.

In January 2012, Vedanta had proposed to acquire the government’s remaining stake in the two erstwhile PSUs for about `17,275 crore.

After shareholders approval, Vedanta Board is now empowered to make an offer of up to `21,636.56 crore for the remaining government stake in HZL. For Balco, the offer can be up to `3,026.14 crore.

Earlier this week, Vedanta Chairman Anil Agarwal met Economic Affairs Secretary Arvind Mayaram and discussed the stake sale in two companies. Agarwal said that he would bid for the companies if the price offered is lucrative. (With agency inputs)

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