The Union Government on Monday announced that it has approved the strategic divestment of Central Electronics Ltd (CEL)- a CPSE under the Department of Scientific and Industrial Research (DSIR). The winning bid was by Nandal Finance and Leasing Ltd for Rs 210 crore.
This is the second strategic stake sale by the government after Air India.
"The Alternative Mechanism ... has approved the highest price bid of M/s Nandal Finance and Leasing Pvt Ltd for sale of 100% equity shareholding of GoI in Central Electronics Ltd (CEL) - a CPSE under the Department of Scientific and Industrial Research (DSIR). The winning bid is for Rs 210,00,60000," an official statement said.
The Alternative Mechanism (AM) on strategic disinvestment comprises Road Transport Minister Nitin Gadkari, Finance Minister Nirmala Sitharaman and Minister of State for Science and Technology Jitendra Singh.
Two bidders had put in financial bids for CEL -- Nandal Finance and Leasing Pvt Ltd for Rs 210 crore and JPM Industries Ltd bid for Rs 190 crore.
The higher of the two price bids, submitted by M/s Nandal Finance and Leasing Pvt Ltd, was found to be above the reserve price, the statement added.
The entire disinvestment process has been carried out in a transparent manner, with due regard to confidentiality of the bidders, through multi-layered decision making involving Inter-Ministerial Group (IMG), Core Group of Secretaries on Disinvestment (CDG) and the empowered Alternative Mechanism (AM) at the apex Ministerial level. Transaction Adviser, Legal Adviser, Asset Valuer as professionals in their respective fields, have supported the entire process, the government said in a statement.
The next step will be to issue the Letter of Intent (LoI) and then sign the Share Purchase Agreement following which, the conditions precedent would need to be satisfied by the successful bidder, the company and Government. It is expected that the transaction will be completed during current FY 2021-22, it added.
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