Govt shortlists four bidders for HCL stake

NEW DELHI: The government has shortlisted four bidders including Sterlite Industries and Birla Copper for disinvesting majority stake in Hindustan Copper, due diligence for which is slated to kick off this week.
Official sources said that due diligence would start towards the end of the week at the company''s various units.
The other two bidders, namely Finolex Cables and Metdist, also figure in the list.
Government proposes to divest its entire equity of 98 per cent to a strategic partner along with management control.
It had earlier mandated A F Ferguson to act as global advisor in place of IDBI-Sumitomo Bank combine.
Cabinet Committee on Economic Affairs had earlier this week approved a financial restructuring package for the loss making copper major involving conversion of Rs 440 crore loan on account of voluntary retirement scheme into a one time grant.
Outstanding plan loans worth Rs 71.50 crore as in March 2002 would be converted into equity to improve net worth of the company, while another Rs 25.72 crore outstanding interest on the plan loans would be waived.
Government had last year abandoned a proposal to dilute its equity in the company by hiving off two units, namely Taloja and Khetri into a new company.
A new partner was to be inducted who would pick up 51 per cent stake. The plan failed with bidders refusing to take on the huge liabilities of the company.
Bidders also cited unfavourable locational factors as reasons for not evincing interest.