MSTC transfers 100% stake in FSNL to Konoike Transport Co as part of disinvestment
Under the steel ministry, FSNL is a 100 percent subsidiary of MSTC Ltd. The government had received two technically qualified financial bids for the company.
MSTC transfers 100% stake in FSNL to Konoike Transport Co as part of disinvestment
New Delhi: As a part of the strategic disinvestment of FSNL, a wholly owned subsidiary of MSTC Ltd, the acquisition was completed with the transfer of full shareholding to Konoike Transport Co Ltd, the Department of Investment and Public Asset Management (DIPAM) said. In September last year, the government approved the privatization of FSNL to Japanese corporation Konoike Transport Co Ltd for Rs 320 crore. With that, a share purchase agreement was signed in October.
Under the steel ministry, FSNL is a 100 percent subsidiary of MSTC Ltd. The government had received two technically qualified financial bids for the company.
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"The strategic disinvestment transaction of FSNL (a wholly owned subsidiary of MSTC Ltd) has successfully concluded today with the transfer of 100% shares of FSNL by MSTC to Konoike Transport Co. Ltd. along with management control. A new Board, led by the Strategic Partner, takes charge of FSNL," DIPAM said on X.
Read Also : Jio surpassing 500 million users, surprises with 1 MONTH FREEThe Rs 320 crore bid by Konoike was higher than the reserve price of Rs 262 crore set by the government based on valuation carried out by the transaction adviser and asset valuer. The strategic sale of FSNL received two technically qualified financial bids. The other bid was from Indic Geo Resources Pvt Ltd (a subsidiary of Chandan Steel Ltd).
Konoike Transport Co Ltd is a multifaceted Japanese corporation listed on the Tokyo Stock Exchange.
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