New Delhi [India], July 4 (ANI): Tata Steel Long Products Limited, a unit of Tata Steel, has acquired a strategic stake in Odisha-based Neelachal Ispat Nigam Limited (NINL) for Rs 12,100 crore, the Ministry of Finance said on Monday.
Neelachal Ispat Nigam Limited (NINL) is a Joint Venture of four central public sector enterprises (CPSEs), namely MMTC with a shareholding of 49.78 per cent; NMDC with a shareholding of 10.10 per cent; BHEL with a shareholding of 0.68 per cent; MECON with a shareholding of 0.68 per cent; and 2 Odisha Government PSUs, namely OMC with a shareholding of 20.47 per cent and IPICOL with a shareholding of 12 per cent.
MNINL Strategic Disinvestment transaction has been completed today with the transfer of 93.71 per cent shares of the Joint Venture Partners (4 CPSEs and 2 Odisha Govt. PSUs) to the Strategic Buyer, M/s Tata Steel Long products Limited, the Union Ministry of Finance said in a statement.
The Enterprise Value paid by the Strategic Buyer is Rs 12,100 crores. This payment has been utilised as per the SPA for settlement of dues of employees, operational creditors, secured financial creditors and sellers (operational and financial dues) and for equity of selling shareholders as per SPA, the ministry added.
Following approval of the highest price bid of M/s Tata Steel Long Products Limited on 31st January 2022, the Letter of Award (LOA) was issued to the winning bidder on 2nd February 2022.
The Share Purchase Agreement (SPA) was signed on 10th March, 2022. Thereafter, the Strategic Partner, NINL and the six Selling Shareholders worked towards satisfying a set of conditions defined in the SPA including certification of operational creditor's dues, employees' dues, Sellers' operational dues and Sellers' financial dues. These conditions have since been met to mutual satisfaction, the ministry added. (ANI)