M&A

M&A

Govt-run Ferro Scrap Nigam sold to Japan’s Konoike Transport for Rs.320-Cr

Business Line  

The union government has approved Konoike Transport Co Ltd as the successful bidder for disinvestment of Ferro Scrap Nigam Ltd (FSNL), which is a 100% subsidiary of government-owned MSTC Ltd. (Metal Scrap Trade Corporation Ltd). Konoike had placed a bid at INR 320 crore.FSNL was incorporated in 1979 to provide steel mill services. It specialises in the recovery and processing of scrap from slag and refuge generated during iron and steel making across different steel plants. The reserve price for the transaction was fixed at INR 262 crore on the basis of valuation carried out by experts.Besides Konoike’s, the other bid was that of Indic Geo Resources Pvt Ltd (a subsidiary of Chandan Steel Ltd).