Ferro Scrap Nigam Ltd (FSNL) will be sold for Rs 320 crore to the Japanese company Konoike Transport Co Ltd, according to a government approval on Thursday. MSTC Ltd. owns 100% of FSNL, which is a subsidiary of the Steel Ministry. Two financially qualified technical bids for the company have been received by the government.
A statement from the finance ministry stated that the Alternative Mechanism, which is made up of Steel Minister H. D. Kumaraswamy, Finance Minister Nirmala Sitharaman, and Transport Minister Nitin Gadkari, has accepted the highest bid of Rs 320 crore from Konoike Transport Co Ltd for the sale of 100% of MSTC Ltd’s equity shareholding in FSNL along with the transfer of management control.
The government set a reserve price of Rs 262 crore based on the valuation conducted by the Transaction Adviser and Asset Valuer; the bid of Rs 320 crore exceeded this amount.
There were two technically qualified financial proposals for the FSNL strategic sale. Of the two offers, Konoike Transport Co. Ltd.’s bid, which came in at Rs 320 crore, was the biggest and went over the reserve price. The ministry also stated that Indic Geo Resources Pvt. Ltd., a division of Chandan Steel Ltd., made the other offer.
