New Delhi: MSTC Limited on Thursday signed a share purchase agreement with Konoike Transport Co. Ltd for strategic disinvestment of Ferro Scrap Nigam Limited (FSNL).
Last month, the government had approved the privatisation of FSNL to Japanese corporation Konoike Transport Co Ltd for Rs 320 crore.
"Share Purchase Agreement (SPA) signed today by MSTC Ltd. with Konoike Transport Co. Ltd for strategic disinvestment of Ferro Scrap Nigam Limited (FSNL). The transaction now moves to the concluding stage," DIPAM Secretary said in a post on X.
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 320 crore bid by Konoike 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 other bid was of Indic Geo Resources Pvt Ltd (a subsidiary of Chandan Steel Ltd.).
Konoike Transport Co Ltd is a multi-faceted 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. It specialises in the recovery and processing of scrap from slag generated during iron and steel making across different steel plants.
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