Date:18/05/2004 URL: http://www.thehindubusinessline.com/2004/05/18/stories/2004051802390200.htm

Back Sundram Fasteners' bid for SN Corp gets panel approval

Our Bureau

Kolkata , May 17

A FOUR-member evaluation committee of the Department of Public Enterprises (DPE) of the Government of Orissa, overseeing the PSU disinvestment programme of the State, has cleared the Rs 6.25-crore bid of Sundaram Fasteners Ltd for acquiring all the assets of the sick SN Corporation Ltd, which used to manufacture high tensile fasteners.

Sundaram Fasteners' bid is for all assets such as plant & machinery, raw materials, equipment, work-in-progress and finished goods, but excluding land and building. The operations of SN Corp have remained closed, as per the ID Act, since November 23, 1998.

According to DPE sources, Sundaram Fasteners' bid has been accepted as the best among the total of five bids received, and is now recommended to the Cuttack High Court, for necessary directives.

The company, a subject of winding up proceedings, is under the Cuttack High Court. Once the Court clears the whole process, the sale agreement is expected to be ready.

SN Corp, an undertaking under Industrial Development Corporation of Orissa Ltd (Idcol), was put on the block for sale along with three other Idcol units, namely, the Talcher-based Orichem, Bhubaneswar-based Idcol Piping & Engineering Works Ltd, and ABS Spinning Orissa Ltd.

As per the programme adopted, the DPE intends to restructure the management of the four business undertakings for their long-term survival and operation through sale of assets, transfer of shares and leave and license arrangement.