The strategic disinvestment of government-backed Neelachal Ispat Nigam Ltd (NINL) has been completed with Tata Steel Long Products Ltd acquiring the company for Rs 12,100 crore, the Center announced on Monday. In January this year, Tata Steel Long Products (TSLP), a unit of Tata Steel, won the bid to acquire a 93.71 per cent stake in Odisha-based NINL. It was estimated that the process would be completed by the end of the March to June quarter.
“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 Enterprise Value paid by the Strategic Buyer is Rs. 12,100 Crores,” said the finance ministry in a statement on Monday.
Neelachal Ispat Nigam Limited (NINL) is a joint venture of 4 CPSEs, namely — MMTC with a shareholding of 49.78 per cent; NMDC with a shareholding of 10.10 per cent; BHEL and MECON, which have 0.68 per cent shares each; and two Odisha Government PSUs, namely — OMC with 20.47 per cent shares and IPICOL with 12.00 per cent shares.
The Finance Ministry said on Monday that this payment was used for the settlement of employees, operating creditors, secured financial creditors and vendors (operational and financial dues) as per the SPA and for selling equity to the shareholders as per the SPA.