The Hindu : AP Govt. divests stake in AP Paper Mills

Online edition of India's National Newspaper
Saturday, Dec 13, 2003

Business

Business

AP Govt. divests stake in AP Paper Mills

By Our Staff Reporter

HYDERABAD DEC. 12. The Andhra Pradesh Government has sold its stake of 25.36 per cent in Andhra Pradesh Paper Mills, Rajamundry, to Digvijay Investments (DIL) for Rs. 39.29 crores, Deepak Kumar Panwar, Principal Secretary, Public Enterprises Department, and Chairman, Implementation Secretariat, said here on Friday.

The sale was concluded on a share price of Rs. 130.95 per share, which represents a sizable premium over Tuesday's closing price of Rs. 112.30 as well as from the initial DIL offer of Rs. 117 per share, Mr. Panwar said. DIL already controls 46.73 per cent of the company's shares.

Mr. Panwar discounted any external interference in fixing of the price and stressed on the role of the professional consultants in arriving at the final price. With this the Andhra Pradesh Government has achieved much of its disinvestment target. It has minor stakes in Hyderabad Industries, Nagarjuna Fertilisers and Chemicals and Bakelite Hylam. Disinvestment in seven cooperative sugar factories is at present under judicial review.

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