Implementation Secretariat Asks Ferguson To Decide Godavari Fert Share Value
Financial Express, 13.06.2003
The Implementation Secretariat (IS), the nodal agency having mandate to sell government-holdings in listed companies, has once again sought the services of AF Ferguson & Co., to evaluate the share value of Godavari Fertilisers, which was put on the block.
"We have commissioned the services of AF Ferguson to estimate the value of Godavari Fertiliser shares held by the government, taking into consideration of offloading 26 per cent only", Mr. DK Panwar, chairman IS said on Thursday. The final report is likely to be submitted by the consultant before July 2, the day of opening the price bids.
Earlier, Ferguson had estimated the value of the shares, if sold together by the Andhra Pradesh government and Iffco, which is 51 per cent. Ferguson's first report has already been circulated to all the registered bidders, since Iffco had access to it.
According to Mr. Panwar the consultant had valued the shares at Rs 63.70 each. Since Iffco had preferred to hold its stake in the company, which is about 25 per cent, the AP government has decided to go alone as part of its Divestment Policy.
Mr. Panwar said that IS had so far registered eight prospective bidders including two foreign companies - Foskor Ltd from South Africa and Groupe Chimique Tunisian from Tunisia.
"We expect lot of competition among the prospective bidders as all seven out of eight registered have almost completed the due diligence", he said.
Besides Coromandal Fertilisers, which had already acquired about 14 per cent stake in the company from the open market, the contenders include Kribhco, Krebs Bio, Zuari, Deepak Fertilisers, South India Corporation.
The successful bidder has to make a mandatory public offering for acquiring an additional stock of 20 per cent, taking the total holding over 45 per cent, thus enabling the preferred bidder to exercise management control in the company.