MMTC Ltd on Thursday said it has executed a share purchase agreement to sell its entire stake in Neelachal Ispat Nigam Ltd (NINL) to Tata Steel Long Products Ltd as part of the disinvestment drive of the government. In January, the government approved the sale of loss-making NINL to Tata Steel Long Products Ltd (TSLPL) for Rs 12,100 crore.
“…in continuation of our earlier disclosures regarding disinvestment of Neelachal Ispat Nigam Ltd, we wish to inform you that the company has executed the share purchase agreement and escrow agreement for the sale of its entire equity holding of the company in NINL to Tata Steel Long Products Limited, the successful bidder selected through the two-stage auction procedure, involving a competitive bidding process, run under the aegis of Department of Investment and Public Asset Management (DIPAM),” MMTC said in a BSE filing.
The definitive agreements, it said, have been executed by all promoters/sellers, the Centre, Odisha government and the buyer.
The completion of the transaction would require fulfilment of certain actions contemplated under the definitive agreements and the transfer of shareholding of the company in NINL to Tata Steel Long Products Ltd, it added.Source: Economic Times