Sterlite sole bidder for HZL

NEW DELHI, NOV. 9. Sterlite Industries has emerged as the sole bidder for acquiring government's 26 per cent stake in Hindustaan Zinc (HZL) and the Cabinet Commitee on Disinvestment (CCD) is likely to decide on the bid at its meeting tomorrow.

The other four contenders including international bidders namely, Glencore and Metdist-Phelps Dodge combine shied away from submitting price bids which closed yesterday, government sources said.

The other bidders namely, Binani Zinc-Korea Zinc consortium and Birla copper, also did not participate in the financial bids.

Although Metdist combine had evinced keen interest in the deal, the company made a last minute exit from the race.

Sources cited lack of confidence on the part of international mining majors as the reason for poor response and added that successful completion of a few more deals would help restore faith.

The CCD is slated to meet on November 10 to finalise the sale of HZL, ITDC and Hotel Corporation (HCL).

The Government will dilute its equity to 49 per cent in the zinc major, ceding management control to strategic partner.

It has mandated BNP-Paribas to act as global advisors for the deal.

Earlier, four other companies including steel baron Mr. L. N. Mittal had dropped out along with the B C Jindal group, Allied Deals and Bhushan Steel. Sterlite had earlier bought 51 per cent stake in aluminium major Balco for Rs. 551.50 crores.

Meanwhile, on October 23, the CCD had finalised transaction documents for sale of 13 hotels of India Tourism Development Corporation and Hotel Corporation of India.

The Government had decided to stagger the price bids for ITDC and HCI over a few days, to enable bidders arrange for bank guarantees and complete other formalities.

While Hotel Ashoka in Delhi and Bangalore would be given on renewable lease for 30 years, other properties of ITDC for which price bids have been invited are Agra, Madurai, Manali, Bodhgaya, Hasan and Mahablaipuram.

All the properties of Hotel Corporation excepting Srinagar property would be divested and the proceeds from these would be ploughed back into Air India for strengthening India's international flagcarrier.

- PTI

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