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New Delhi, Nov 29 (IANS) The Centre has decided the sale of Central Electronics (CEL) to Nandal Finance and Leasing for Rs 210 crore.
The Cabinet Committee on Economic Affairs (CCEA) empowered Alternative Mechanism approved the highest price bid of Nandal Finance for sale of 100 per cent equity shareholding of the government in the CPSE, under the Department of Scientific and Industrial Research.
As per the Ministry of Finance, under the process, Nandal Finance quoted Rs 210 crore, while JPM Industries had made a bid of Rs 190 crore.
A Reserve Price of Rs 194 crore was fixed by the Transaction Adviser and the Asset Valuer.
"The entire disinvestment process has been carried out in a transparent manner, with due regard to confidentiality of the bidders, through multi-layered decision making involving Inter-Ministerial Group, Core Group of Secretaries on Disinvestment, and the empowered Alternative Mechanism at the apex Ministerial level," the Ministry of Finance said in a statement.
"Transaction Adviser, Legal Adviser, Asset Valuer as professionals in their respective fields, have supported the entire process."
As per the ministry, the next step will be to issue the Letter of Intent (LoI) and then sign the Share Purchase Agreement, following which, the conditions precedent would need to be satisfied by the "successful bidder, the company and government".
It is expected that the transaction will be completed during current FY 2021-22.
The process for disinvestment of CEL commenced in October 27, 2016 with the in principle approval of the CCEA.
--IANS
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