NEW DELHI: The government has completed the strategic disinvestment of Nilachal Ispat Nigam (NINL) with the transfer of 93.7% stake to Tata Steel Long Products for the consideration of Rs 12,100 crore, it said Monday. Tata Group had earlier this year acquired Air India, the first privatisation by the Narendra Modi-led government.
NINL is a joint venture of 4 CPSEs, namely MMTC, NMDC, BHEL, MECON and two Odisha state PSUs - OMC and IPICOL. MMTC was the largest shareholder in NINL having 49.78% followed by NMDC at 10.8%, BHEL and MECON both at 0.68%.
The enterprise value paid by the strategic buyer is Rs 12,100 crore. This payment has been utilised as per the SPA (sale and purchase agreement) for settlement of dues of employees, operational creditors, secured financial creditors and sellers and for equity of selling shareholders as per SPA,” the government release said.
The share purchase agreement was signed on March 10 this year, after which NINL and the 6 selling shareholders worked towards satisfying a set of conditions defined in the SPA including certification of operational creditor’s dues and sellers’ operational dues and sellers’ financial dues. These conditions have since been met to mutual satisfaction, the government added.