Govt invites bids for Hindustan Newsprint disinvestment1 min read . Updated: 28 Mar 2018, 11:19 PM IST
Hindustan Paper to sell its 100% stake in Hindustan Newsprint through a strategic disinvestment route, says Department of Investment and Public Asset Management
New Delhi: Along with strategic disinvestment of Air India, the government has also sought expression of interest (EoI) for fully divesting Kerala-based central public sector undertaking (CPSE) Hindustan Newsprint Ltd (HNL).
HNL, with an installed capacity of 1 lakh tonnes per annum of newsprint, is a wholly owned subsidiary of the Hindustan Paper Corporation Limited (HPCL). It recorded a sales turnover of Rs337.94 crore during 2016-17.
HPCL has decided to sell 100% of its stake in HNL through a strategic disinvestment route, along with transfer of management control, the Department of Investment and Public Asset Management (DIPAM) said in a statement.
HPCL has appointed Resurgent India Limited as its advisor to manage the strategic disinvestment of HNL. Interested parties with a minimum net worth of Rs350 crore can express their interest by 7 May.
Bidding through a consortium has also been permitted provided the lead member of the consortium has a minimum equity contribution of 51% and minimum net worth of Rs180 crore. All the members or the selected bidder will be required to lock in shares for a period of three years during which they cannot undertake the sale of their stake in HNL.
Finance minister Arun Jaitley in his budget speech said that the government has initiated the process of strategic disinvestment in 24 CPSEs including strategic privatization of Air India. Government has achieved the revised target of Rs1 trillion in disinvestment proceeds in 2017-18 and has set a disinvestment target of Rs80,000 crore for 2018-19.