Saturday, Jul 12, 2003
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All the eight are publicly listed companies and barring one, actively traded. The units and the percentage of Government's shareholding are Andhra Pradesh Paper Mills (25.36 per cent), Sirpur Paper Mills (6.35 per cent), VST (4.69 per cent), Hyderabad Industries (4.27 per cent), Nagarjuna Fertiliser (4.68 per cent), TELCO (0.51 per cent), Associated Cement Company (0.44 per cent) and Bakelite Hylam Limited (8.82 per cent), the only company which figures in the BIFR list and which is not so actively traded.
Addressing a press conference here on Friday, D. K. Panwar, Chairman of the Implementation Secretariat, said the disinvestment strategy to be adopted would be put up before the next meeting of the Cabinet Sub Committee, likely in ten days' time, to obtain its approval.
He denied reports in a section of the press that an offer had been made to the promoters of the AP Paper Mills. "We have neither given an offer nor taken any. No decision has been taken so far on this aspect. All possible ways of dealing with the Government shares are being explored in the best interest of the Government,'' he added. To a question, he did not rule out the possibility of the existing promoters themselves coming up with the offer of buying the Government's shares and the Government accepting it.
He said the valuation of the eight units had been completed by Capital Fortune, which will enable a decision on the reserve price. The UTI Securities has been the consultant for advising the Government on disinvestment in these eight units.
Meanwhile, the Implementation Secretariat would sign the Share Purchase Agreement (SPA) for the sale of the Government's 25.88 per cent shareholding in GFCL with the Coromandel Fertilisers Ltd (CFL) tomorrow.
The signing is the outcome of the Government's notice and the bidding in which Coromandel emerged successful offering Rs. 124 per share. "The closing of the deal in less than two months is reflective of the commitment of the Government to the reforms process and the effectiveness of the procedures laid down for disinvestment,'' he said.
Mr. Panwar and R. S. Nanda, President and MD of CFL, will sign the SPA. The CFL will symbolically make the payment of Rs. 102.67 crores to the Government. A board meeting of GFCL will follow for appointment of new directors. Later in the day, the CFL will hand over the cheque to the Chief Minister, N. Chandrababu Naidu.
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