New Delhi, March 4: The Centre is likely to decide on Monday on modalities for hiving off the non-oil business of IBP Ltd as a pre-privatisation exercise. The petroleum marketing company has attracted 16-18 national and international oil giants bids for acquisition. The inter-ministerial group (IMG), comprising officials of ministries of petroleum, disinvestment and IBP Ltd, will meet here to finalise the ways for segregating the non-oil business under the marketing company's subsidiary Balmer Lawrie.The issue of hiving off arose again after the government's failed bid to pass on the Balmer Lawrie to another national oil companies, sources said adding that IMG would also discuss the privatisation plans of IBP in view of the bids received till the closing day on February 28.
HSBC Securities and Capital Markets, the global consultant appointed by Cabinet Committee on Disinvestment for privatisation of IBP Ltd, have been asked to recommend modalities for hiving off, sources said adding that consultants will be submitting their report to IMG on Monday.
HSBC was mandated to recommend demerger of IBP's engineering and chemical business interests to form a separate public sector undertaking to facilitate sale of 33.58 per cent equity from the government's holding of about 60 per cent. The IMG is likely to work on the proposal of making IBP's 8 per cent subsidiary Balmer Lawrie and Co Ltd as the holding company of all the non-oil business interests. Government holding in the new entity would be to the extent of IBP's current holding in Balmer Lawrie - 61.8 per cent, while the remaining equity would be spread among the other shareholders of Balmer Lawrie and its joint venture companies, sources said.
(PTI)
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