The Union Cabinet has approved the sale of MSTC Ltd’s 100 percent equity shareholding in Ferro Scrap Nigam Limited (FSNL) to Japan’s , a government statement said on September 19.
The deal received clearance from Alternative Mechanism that is empowered by the Cabinet Committee on Economic Affairs and comprised of Union ministers Nitin Gadkari, Nirmala Sitharaman and HD Kumaraswamy. Under the transaction, the Japanese firm will also get the control of the management, the statement said.
FSNL, which is a 100 percent subsidiary of MSTC Ltd. under Ministry of Steel, was incorporated on March 28, 1979 to provide steel mill services. The company specialises in the recovery and processing of scrap from slag and refuge generated during iron and steel making across different steel plants.
The strategic disinvestment of MSTC’s entire shareholding had received ‘in-principle’ approval in October 2016 with the strategic buyer to be identified through two-stage auction process.
MSTC Ltd, which is listed in India, closed 2.27 percent higher on NSE at Rs 729 on September 19.
Tokyo Stock Exchange-listed Konoike Transport Co Ltd is a multifaceted Japanese corporation with a long-established steel division and over 140 years of experience in steelworks operations, the government statement added.
The division provides comprehensive services ranging from raw material acceptance to manufacturing processes, slag treatment, scrap processing, examination, packaging and delivery of steel products, supporting customers' operations.
The division also engages in recycling projects, such as the Perfect Recycling System, which recycles industrial waste without producing secondary waste.
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