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CCD to decide EIL, HCI, SCI sale
January 27, 2003 16:09 IST
Buoyed by the go-ahead for divestment of oil public sector units, Hindustan Petroleum Corporation Limited and Bharat Petroleum Corporation Limited, the divestment ministry will now seek a meeting of Cabinet Committee on Divestment soon to finalise transaction documents for sale of equity in Engineers India Ltd and Shipping Corporation of India Limited.Three PSUs--EIL, Hindustan Copper and SCI--where divestment process is in advanced stages, would now be taken to CCD for approval of draft shareholders and share purchase agreements, official sources told PTI in New Delhi.
Sources said the divestment ministry would soon seek a meeting of CCD, but declined to give a timeframe. The government, which currently owns 90.39 per cent stake in EIL, has decided to divest 51 per cent of its shareholding in favour of a strategic partner along with management control.
An additional 10 per cent stake would be offered to employees at one-third of market price or bid price whichever is lower.
Over half a dozen companies are eyeing stake in the engineering consultancy PSU including ONGC-BHEL combine, GAIL-L&T combine, Reliance, Essar, Tisco, Warburg Pincus, Jindal and Russia-based Sun Securities.
In the case of national flag carrier Shipping Corporation of India, the government currently holds about 80 per cent stake and is planning to off-load 51 per cent stake to strategic partner.
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