LN Mittal makes last minute bid for Hind Zinc

LN Mittal makes last minute bid for Hind Zinc

NEW DELHI, JAN 25: Steel baron L N Mittal has entered the fray for acquiring 26 per cent stake in the public sector Hindustan Zinc Ltd (HZL), slated for privitisation by next fiscal. The London-based Indian businessman has made a last minute entry in the race for acquiring stake in the zinc major, according to official sources. Mittal is learnt to have filed an expression of interest for acquiring stake in the blue chip PSU on January 15, the last date for doing so.

However, the EoI suprisingly does not make any referenceto past experience as a criteria unlike in the case of some other PSUs like IBP. Glencore has eyed the zinc major because of the duopolistic nature of the market with only two players in the market namely Binani Zinc and HZL. HZL is even otherwise considered to be a good option onaccount of the highly valuable assets it posses. The company's Rampur Agucha mines in Rajasthan are considered to be one of the best mines in the world.

Several companies including Birla's, Sterlite Industries Binani Zinc-Korea Zinc combine along with Allied Deals have announced their intention to bid for the zinc major. The government had earlier decided to hive off the Khetri and Taloja units of HCL whoose assets would then form 49 per cent contribution of HCL in the new joint venture company. The remaining 51 per cent equity would be brought in by the strategic partner. A consortium headed by Industrial Development Bank ofIndia (IDBI) and Sumitomo Bank have been mandated to act as global advisors for the disinvestment. Glencore is a Swissp-based company with total assets of over 9.4 billion dollars and a share holders equity of 1.7 billion dollars.