Govt. for 3 year lock-in period for HCL partner

NEW DELHI, APRIL 18. The Government has decided to incorporate a three year lock-in period for strategic partner in Hindustan Copper (HCL), slated for privatisation this fiscal.

The provision is similar to the one incorporated in the scheme for privatisation of aluminium major Balco, official sources told PTI.

This means the strategic partner would not be able to transfer its stake in the company to any other party during the three year period.

Sources said the Government has opted for a three year period as it would provide adequate safeguards to ensure that the partner would not exit the company in undue haste.

The Government has decided to hive off two units of copper major as part of a sell-off programme. Khetri and Taloja units of HCL will be hived off into a separate company prior to privatisation.

The assets of the two units will form 49 per cent contribution of the Government in the new company while the strategic partner would infuse 51 per cent equity.

It has mandated a consortium of Industrial Development Bank of India (IDBI) and Sumitomo Bank to act as global advisors for the sale.

Global advisors had earlier deferred financial bids for HCL with bidders asking the Government for further information about the company.

The Government had earlier shortlisted four suitors for acquiring stake in the new company. The four include domestic copper majors Birla Copper and Sterlite Industries, the new owners of Balco.

International copper giant Phelps Dodge has tied hands with metals giant Metdist while Swiss metals major Glencore has entered the fray on its own. The Government had earlier chalked out a timeframe to complete the sell off by June.

Meanwhile all four players have completed their due diligence exercise in the company.

- PTI

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Section  : Business
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