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The union government has approved the strategic disinvestment of Central Electronics Ltd (CEL) on the conclusion of competitive bidding process. The winning bid was by Nandal Finance and Leasing Ltd for 260 crore.

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 the union government. The transaction is expected to be completed during current financial year.

The process for disinvestment of CEL commenced in October 2016.

"In the first iteration, due process was followed for strategic sale of CEL, and the final SPA, along with 'Request for Proposal' document were shared with the Qualified Institutional Buyers (QIBs) and inviting financial bid in 2019. However, no financial bids were received.

The process was re-launched in February this year, inviting bids and the last date was extended due to prevailing coronavirus situation.

The Last date of submission of financial bid was till mid-October due to disruptions caused by covid-19 and on the request from bidders. By the last date, two sealed bids were received along with non-financial bid documents and bid security from the two qualified bidders.

"After receipt of sealed financial bids and in line with the approved procedure for strategic disinvestment, ‘Reserve Price’ of 194 crore was fixed based on valuations by the Transaction Adviser (TA) and the Asset Valuer (AV) using respective methodologies as per the established process," the ministry of finance said in a statement.

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