Tata Steel Long Products Ltd takes over NINL

Tata Steel Long Products Ltd – Neelachal Ispat Nigam Limited (NINL), a joint venture between two government entities from Odisha, OMC (20.47 percent) and IPICOL, and four CPSEs, namely MMTC (shareholding of 49.78 percent), NMDC (10.10 percent), BHEL (0.68 percent), and MECON (0.68 percent), is based in New Delhi (12.00 percent ). 
 
The transfer of 93.71 percent of the joint venture partners’ shares to the strategic buyer, M/s Tata Steel Long Products Limited, marked the completion of the MNINL Strategic Disinvestment transaction today. 12,100 crores of rupees are the Enterprise Value that the strategic buyer has paid. 
 
According to the SPA, this payment has been used to satisfy debts owed by sellers, employees, operational creditors, secured creditors, and operational creditors (both financial and operational dues). It has also been used to settle equity debt owed by selling shareholders. 
 
The highest price proposal submitted by M/s Tata Steel Long Products Limited was accepted on January 31, 2022, and on February 2nd, 2022, the winning bidder received a Letter of Award (LOA). On March 10, 2022, the Share Purchase Agreement (SPA) was signed. 
 
Following that, the Strategic Partner, NINL, and the six Selling Shareholders sought to fulfil a number of requirements outlined in the SPA, including the certification of operational creditor’s dues, employee’s dues, and Sellers’ operational and financial dues. Since then, both parties have found these conditions to be satisfied.