Adding to Stemcor's Indian assets sale saga, it has now been understood that Indian seekers may not be interested to purchase the assets considering the fact that the company may only offer minority stake.
Grapevine has it that Stemcor India's MD, Mathew Stock owns about 24% stake of the Indian assets and he may not offer his holding for sale.
Arya Mining and Trading Corporation (AMTC) owns about 27% in the Iron ore mines and are not interested in selling either.
All this means less than 50% of the stake will be on sale.
Hence, Indian steel producers may not be much interested to own a minority stake, auction of which is expected to take place around mid of September.
Stemcor, world's largest steel trader, had in the beginning of FY 14, decided to offer its Indian assets for sale to repay its debts.
The assets include Iron ore mines, 4 MnT Iron Pellet plant, 4 MnT Beneficiation plant and a slurry pipeline, being operated in the state of Odisha.
For more details, contact
Seema Goenka
(seema@steelmint.com)
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