The Hindu : IFFCO major bidder for MFL stake

Online edition of India's National Newspaper
Tuesday, Jul 01, 2003

Business

Business

IFFCO major bidder for MFL stake

NEW DELHI JUNE 30. The fertilizer major Indian Farmers Fertilizers Cooperative Ltd. (IFFCO) today emerged as a major bidder for Government stake in Madras Fertiliser Ltd. (MFL) with some major players choosing to stay away. The fertilizer co-operative Kribhco along with Tata Chemicals and Deepak Fertilisers decided against entering the fray as initial bids closed for MFL today, sources associated with the process said.

However, confirmation could not be obtained from the K. K. Birla group company, Zuari Chambal Fertilisers.

The Government has decided to disinvest 32.7 per cent stake in MFL to a strategic partner along with management control. It also decided to negotiate with its joint venture partner National Iranian Oil Company to enable the latter to tag along in the process.

A consortium of ICICI Securities and Bank of America has been mandated to act as global advisors for the deal.

The loss making MFL is also in the process of seeking a capital restructuring package aimed at improving its balance sheet and attracting prospective bidders.

The Cabinet Committee on Disinvestment (CCD) had earlier sought fresh bids for the company along with those for NFL and the Travancore based FACT after finalisation of fertilizer prices and changes in the fertilizer policy.

— PTI

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