Strategic Disinvestment of Neelachal Ispat Nigam Limited Completed: Tata Steel Long Products Limited Takes Over NINL
Bhubaneswar: The strategic disinvestment transaction of Neelachal Ispat Nigal Limited (NINL) has been completed today with the transfer of 93.71% shares of the Joint Venture Partners (4 CPSEs and 2 Odisha Govt. PSUs) to the Strategic Buyer, M/s Tata Steel Long products Limited. The Enterprise Value paid by the Strategic Buyer is Rs. 12,100 Crore. This payment has been utilized as per the SPA for settlement of dues of employees, operational creditors, secured financial creditors and sellers (operational and financial dues) and for equity of selling shareholders as per SPA.
Following approval of the highest price bid of M/s Tata Steel Long Products Limited on 31st January, 2022, the Letter of Award (LOA) was issued to the winning bidder on 2nd February, 2022.The Share Purchase Agreement (SPA) was signed on 10th March, 2022. Thereafter, the Strategic Partner, NINL and the six Selling Shareholders worked towards satisfying a set of conditions defined in the SPA including certification of operational creditor’s dues, employees’ dues, Sellers’ operational dues and Sellers’ financial dues. These conditions have since been met to mutual satisfaction.
NINL is a joint venture of 4 CPSEs – MMTC (49.78%), NMDC (10.10%), BHEL, MECON, and 2 Odisha Government PSUs – OMC & IPICOL (12%)
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