RINL in talks to buy Neelachal

KOLKATA: Rashtriya Ispat Nigam Limited, which operates the Vizag Steel Plant, is in advanced stages of talks with MMTC for acquiring the other state owned, unlisted steel maker, Neelachal Ispat Nigam.

The Vizag-based integrated steelmaker hopes to complete its talks with MMTC, co-promoter of Neelachal Ispat, by December 10. The balance equity shareholding is held by Industrial Promotion and Investment Corporation of Orissa (Ipicol), a government of Orissa investment arm.

"We discussed the valuation fundamentals and substance of the proposed deal in our talks with MMTC," said chairman PK Bishnoi. "In the last 3-4 years, Neelachal Ispat has been valued more than a few times and there is wide variation in the valuation of Neelachal shares. Both RINL and MMTC companies need to agree on basic input data that will be plugged in to arrive at a valuation of Neelachal," he told ET.

The meeting held over Nov 24-25 was focused on arriving at mutually agreeable terms for valuing NINL shares.