CCD clears Nepa 72% selloff

NEW DELHI: The Cabinet committee on disinvestment (CCD) today cleared 72% divestment of government stake in Madhya Pradesh-based Nepa Ltd following an settlement on land issues between the state government, environment ministry and the company. The government will retaining 26% shareholding.
Disinvestment minister Arun Shourie told reporters here today that financial bids would be invited soon. Only one bidder is in the fray to acquire the company now although four companies had earlier submitted expression of interest (EoI).
Government will accept the financial bid of this bidder only if it is above the reserve price set by an inter-ministerial group, Mr Shourie added. SBI Capital Markets is the advisors to the government for the transaction.
Disinvestment of government holding in Manganese Ore India Ltd could not be discussed as the steels minister was required to attend a Parliamentary panel meeting.
CCD cleared shareholders’ agreement and share purchase agreement paving the way for privatisation of newsprint manufacturer. The government owns 98% in the company with the remaining equity being held by public and MP government.
Net worth of the company had turned negative and it was referred to BIFR in 1998.