MSTC shares gained 4 per cent on the BSE to register an intraday high of Rs 752 per share. The company’s stock rose after the Cabinet Committee on Economic Affairs (CCEA) approved Konoike Transport Company as a buyer for disinvestment of Ferro Scrap Nigam, an arm of MSTC.
MSTC is a state-owned diversified e-commerce services company.
At around 9:21 AM, shares of MSTC were up 3.31 per cent at Rs 746.55 per share on the BSE. In comparison, the BSE Sensex traded 126.63 points higher at 83,311.43 around the same time.
“We would like to inform you that the Alternative Mechanism, empowered by the Cabinet Committee on Economic Affairs, has approved M/s. Konoike Transport Co. Ltd. as strategic buyer for disinvestment of Ferro Scrap Nigam Limited (FSNL), a 100 per cent subsidiary of MSTC Ltd,” the filing read.
Japan based Konoike Transport Co. Ltd was the highest bidder for acquiring Ferro Scrap Nigam Limited (FSNL). The company had bid Rs 320 crore to acquire the company. Konoike Transport, after completing a two stage open competitive bidding process, will now hold a 100 per cent stake in FSNL and will have full management control as well.
The next step in the process is issuing the Letter of Award, signing of Share Purchase Agreement (SPA), fulfilling of ‘conditions precedent’ as specified in the SPA by the respective parties, and closing the transaction, the company said in an exchange filing.
In October 2016, CCEA had granted approval for the disinvestment of a 100 per cent stake of MSTC in FSNL to a buyer to be identified through a two-stage auction process.
FSNL, a subsidiary of MSTC under the Ministry of Steel (MoS), provides steel mill services. It specialises in the recovery and processing of scrap from slag and refuge generated during iron and steel making across different steel plants.
MSTC (Metal Scrap Trade Corporation) undertakes trading activities, along with the disposal of ferrous and non-ferrous scrap, surplus stores, minerals, agri, and forest products. The company is owned and controlled by the Government of India.
In the past one year, shares of MSTC have gained 76 per cent, compared to the BSE Sensex’s rise of 24.5 per cent during the same period.
First Published: Sep 20 2024 | 10:04 AM IST
