Privatisation of Nigerian firm not to hit HMT

The privatisation of the Nigeria Machine Tools will not affect Bangalore-based public sector, Hindustan Machine Tools (HMT).

The Nigerian government, in a meeting on February 7, decided to retain its shareholding at 15 per cent by withdrawing its earlier decision to convert the debt into equity and offload 70 per cent of the government holding to the highest private bidders for Miramar International Limited, under the privatisation process.

The core investor Miramar International Limited, has sought technical and management support from HMT's and its subsidiaries in the operations of Nigeria Machine Tools, including new business proposals.

HMT has informed exchanges that the company has a joint venture (JV) in Nigeria, Nigeria Machine Tools Ltd, established in 1981 in which the company had invested 15 per cent of equity and the balance 85 per cent by Nigerian Government.

Subsequent to the establishment of the JV, the Nigerian government has infused funds for its operations in the form of loan.