New Delhi, Nov 29, : , The Centre has decided to sell Central Electronics (CEL), to Nandal Finance and Leasing at Rs 210 crore. Alternative Mechanism was authorized by the Cabinet Committee on Economic Affairs (CCEA).
It approved the highest price offered by Nandal Finance to sell 100 per cent of the government’s equity shareholding in the CPSE.This sale is under the Department of Scientific and Industrial Research.
According to the Ministry of Finance Nandal Finance offered Rs 210 crore while JPM Industries made a bid of about Rs 190 crore.
The Asset Valuer and the Transaction Adviser set a Reserve Price of Rs 194 Crore.
“The entire disinvestment process was transparent, with due regard for confidentiality of the bidders through multi-layered decision-making involving the Inter-Ministerial Group and Core Group of Secretaries on Disinvestment and the empowered Alternative Mechanism, at the apex ministerial level,” said the Ministry of Finance in a statement.
“Transaction Adviser and Legal Adviser as professionals in their respective fields have supported the entire process.”
According to the ministry, the next step is to issue the Letter of Intent and then to sign the Share Purchase Agreement.The conditions precedent would then need to be fulfilled by the “successful biddingder”, the company, and the government.
The transaction is expected to be completed in the current FY 2021-22.
CEL was disinvested in October 2016 after the CCEA approved the in principle.
rv/vd #Nandal #share #Central #Electronics #Delhi
.
