The divestment of FSNL, a wholly owned subsidiary of MSTC Ltd, was completed on Tuesday with the transfer of the entire shares to Konoike Transport Co Ltd, the Department of Investment and Public Asset Management (DIPAM) said.
In September last year, the government approved the privatization of FSNL to Japanese company Konoike Transport Co Ltd for Rs 320 crore.
After that, a share purchase agreement was signed in October.
“The strategic liquidation of FSNL (a wholly-owned subsidiary of MSTC Ltd) has been successfully completed today with the transfer of 100% shares of FSNL by MSTC to Konoike Transport Co. Ltd. and management control. The new board, led by Strategic My partner, you are in charge of FSNL,” said DIPAM to X.
Under the iron door, FSNL is a 100 percent subsidiary of MSTC Ltd.
The government received two qualified financial bids for the company.
Konoike’s Rs 320 crore bid was higher than the Rs 262 crore reserve price set by the government on the basis of a valuation by a commercial consultant and property appraiser.
FSNL strategic sales received two technically qualified financial bids. The other bid was from Indic Geo Resources Pvt Ltd (a subsidiary of Chandan Steel Ltd).
Konoike Transport Co Ltd is a Japanese multinational corporation listed on the Tokyo Stock Exchange.
Konoike’s Steel Division is a long-established division of the company, with over 140 years of experience in the steel industry. This division provides a wide range of services from the reception of raw materials to the production processes, slag treatment, scrap processing, testing, packaging and delivery of steel products, to support customer operations.
The division also involves recycling projects, such as the excellent recycling system, which reuses industrial waste without producing secondary waste.
FSNL was incorporated on March 28, 1979, to provide steel mill services.
FSNL specializes in the acquisition and processing of residues from slag produced during the manufacture of iron and steel in all different steel plants.
