India's FSNL Sold to Japan's Konoike for Rs 320 Crore

MSTC has signed an agreement with Konoike Transport Co. Ltd for the sale of Ferro Scrap Nigam Limited, marking a strategic disinvestment. The Japanese firm bid Rs 320 crore, surpassing the government's reserve price of Rs 262 crore. FSNL is a 100% subsidiary of MSTC under India's Steel Ministry.

MSTC signed a share purchase agreement with Konoike Transport Co. Ltd for the strategic disinvestment of Ferro Scrap Nigam Limited (FSNL), pushing the transaction into its final stages. This comes after the government approved FSNL's privatization to Konoike for Rs 320 crore last month.

FSNL, a wholly-owned subsidiary of MSTC under the Steel Ministry, was the subject of two technically qualified financial bids. Konoike's Rs 320 crore offer exceeded the government's reserve price of Rs 262 crore, established through valuation by a Transaction Adviser and Asset Valuer.

Konoike Transport Co Ltd, listed on the Tokyo Stock Exchange, has a long-standing history in steelworks operations. Its Steel Division, with over 140 years of experience, provides end-to-end services and engages in recycling projects. FSNL, founded in 1979, specializes in recovering and processing scrap from slag in steel plants.

(With inputs from agencies.)