Seven Bidders Shortlisted In Hind Zinc Selloff Race

As many as seven bidders vying for the government stake in Hindustan Zinc have been shortlisted for the final race. These include the AV Birla group, Allied Deal of the UK, Binani Industries in consortium with Korea Zinc, Sterlite Industries, Glencore, Bhushan Steel and the UK-based Metdist in association with Phelps Dodge of Canada.

"The Centre has decided to shortlist all the seven bidders for the final phase of the bidding process. This move is expected to bring more competition among strategic investors," a top merchant banking official close to the divestment process said.

It will have a positive impact on the valuation of the state-run company as all these bidders are keen to grab the zinc major.

 

Earlier, L N Mittal and the B C Jindal group had pulled out of the race. The disinvestment programme had attracted close to 15 bids in the initial phase.

According to the merchant banking official, all these bidders will be able to submit their bids this month. All the seven have already completed the due-diligence exercise.

The Centre is planning to offer its 26 per cent stake in Hindustan zinc to the strategic investor through the bidding process. The strategic investor will have to make an open offer for an additional 20 per cent in the zinc major as per the Securities and Exchange Board of India guidelines. The Centre plans to complete the disinvestment by September-October.

Meanwhile, the government is yet to take a final decision on Sterlite Industries, one of the contenders for Hindustan Zinc. Recently the government had barred Sterlite Industries from the bidding on economic grounds. This decision was contested by the Sterlite management.