Strategic Disinvestment of Neelachal Ispat Nigam Limited (NINL) completed

Tata Steel Long Products Limited takes over NINL

Neelachal Ispat Nigam Limited (NINL) is a Joint Venture of 4 CPSEs, namely MMTC (shareholding of 49.78%), NMDC (10.10%), BHEL (0.68%), MECON (0.68%) and 2 Odisha Government PSUs, namely OMC (20.47%) and IPICOL (12.00%).

MNINL Strategic Disinvestment transaction 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 Crores. 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.

Strategic disinvestment completed: majority stake transferred to strategic buyer with SPA-led settlement of creditor and employee dues. Strategic disinvestment executed by sale of a controlling stake under a Share Purchase Agreement: the highest-price bidder was issued a Letter of Award and executed the SPA, after which the parties satisfied SPA conditions including certification and settlement of employees', operational creditors', sellers' and secured financial creditors' dues. The purchase consideration was applied per the SPA to discharge those liabilities and to provide equity to the selling shareholders, enabling transfer of the selling shareholders' majority shareholding to the strategic buyer.