New Delhi: Neelachal Ispat Nigam Limited (NINL) is a joint venture of four Central Public Sector Enterprises (CPSEs), namely MMTC (shareholding of 49.78%), NMDC (10.10%), BHEL (0.68%), MECON (0.68%) and two Odisha Government public sector undertakings, namely OMC (20.47%) and IPICOL (12.00%).
The MNINL strategic disinvestment transaction has been completed today with the transfer of 93.71% shares of the joint venture partners (four CPSEs and two Odisha Government PSUs) to the strategic buyer, M/s Tata Steel Long products Limited. The enterprise value paid by the strategic buyer is Rs 12,100 crore. This payment has been utilized as per the Share Purchase Agreement (SPA) for settlement of dues of employees, operational creditors, secured financial creditors and sellers (operational and financial dues) and for equity of selling shareholders as per SPA.
Following approval of the highest price bid of M/s Tata Steel Long Products Limited on January 31, 2022, the Letter of Award (LOA) was issued to the winning bidder on February 2, 2022.The share purchase agreement was signed on March 10, 2022. Thereafter, the strategic partner, NINL and the six selling shareholders worked towards satisfying a set of conditions defined in the SPA including certification of operational creditor’s dues, employees’ dues, sellers’ operational dues and sellers’ financial dues. These conditions have since been met to mutual satisfaction, the Central government said in a statement.