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MUL control for Suzuki

By Our Special Correspondent

NEW DELHI MAY 14. The Cabinet Committee on Disinvestment chaired by the Prime Minister, Atal Behari Vajpayee, tonight cleared a proposal for diluting the Government's stake in the country's premier car manufacturer, Maruti Udyog Limited, in favour of its joint venture partner, Suzuki Motor Corporation of Japan, through a two-stage process. In the first phase, the Government will renounce its share in a rights issue of Rs. 400 crores to Suzuki which would gain the majority control and pay Rs. 1,000 crores to the Government as control premium, thus bringing down the Centre's holding to 45.54 per cent and increasing Suzuki's holding to 54.20 per cent. In the second phase, a public issue of 36 lakh shares at Rs. 2,300 a share would be launched with Suzuki underwriting the issue. This was stated by the Union Disinvestment Minister, Arun Shourie, at a news conference.

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