New Delhi: The Government on Thursday approved the privatisation of Ferro Scrap Nigam Ltd (FSNL) to Japanese corporation Konoike Transport Co Ltd for Rs 320 crore.
Under the Steel Ministry, FSNL is a 100 percent subsidiary of MSTC Ltd. The government had received two technically qualified financial bids for the company.
The Alternative Mechanism, comprising Transport Minister Nitin Gadkari, Finance Minister Nirmala Sitharaman and Steel Minister H. D. Kumaraswamy, have approved the highest bid amounting to Rs 320 crore of Konoike Transport Co Ltd for sale of 100 per cent equity shareholding of MSTC Ltd in FSNL along with transfer of management control, a finance ministry statement said.
The 320 crore bid was higher than the reserve price of Rs 262 crore set by the government on the basis of valuation carried out by the Transaction Adviser and Asset Valuer.
The strategic sale of FSNL received two technically qualified financial bids.
The bid submitted by Konoike Transport Co. Ltd at Rs 320 crore was the highest of the two bids and was also above the reserve price. The other bid was of Indic Geo Resources Pvt. Ltd. (a subsidiary of Chandan Steel Ltd.), the ministry added.
Konoike Transport Co Ltd is a multifaceted Japanese corporation listed on the Tokyo Stock Exchange.
Konoike's Steel Division is a long-established segment of the company, with over 140 years of experience in steelworks operations. The division provides comprehensive services ranging from raw material acceptance to manufacturing processes, slag treatment, scrap processing, examination, packaging and delivery of steel products, supporting customers' operations.
The division also engages in recycling projects, such as the perfect recycling system, which recycles industrial waste without producing secondary waste.
FSNL was incorporated on March 28, 1979, to provide steel mill services. FSNL specialises in the recovery and processing of scrap from slag generated during iron and steel making across different steel plants.
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