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May 15, 2001
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Money > Business Headlines > Report May 15, 2001 |
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Iffco in line to acquire 51 per cent stake in NFLSunanda Sanganeria & Mamata Singh Fertiliser co-operative Iffco is in line for acquiring majority stake in the state-run National Fertilisers Ltd, which is due for divestment this year. The co-operative has also approached Rabo Bank, which is advising the government on this deal, company sources said. "Iffco is also in line for acquiring 51 per cent stake in NFL. We have approached Rabo Bank for the purpose," top sources in the company said. Any legal entity can bid for public sector units. The public character of the co-operatives is not a disqualifying factor, said officials in the department of divestment. However, the co-operative said, any final decision on acquiring NFL would only be taken if the Centre relinquishes its 71.64 per cent stake in Iffco, the sources said adding, "there is no point in acquiring another company if we are controlled by the government since we would like to run NFL without the usual governmental pressures." The Centre has a 71.64 per cent stake in Iffco, while various co-operatives and the National Co-operative Development Corporation have 27.85 per cent and 0.51 per cent respectively. Co-operatives, Iffco and Kribhco, which account for a quarter of the country's annual urea production are keen on surrendering government equity as this would confer growth and functional autonomy, and facilitate their operation as genuine member-controlled co-operatives. They are also awaiting the long-standing Multi-State Co-operative Societies Bill, 2000 in Parliament, which provides that "shares held in a multi-state co-operative by any authority shall be redeemable in a manner agreed by both". The reserves and surpluses of both Iffco and Kribhco were around Rs 34 billion as on March 31, 2000. Iffco sources said the redemption would be done on the face value of the shares. "The redemption need not be done completely through our reserves," sources said adding there would be no dearth of lenders offering funds at competitive rates. Iffco's maiden bond issue of raising Rs 1.50 billion had been a major success and the three-year offering was over-subscribed almost three times. Powered by YOU MAY ALSO WANT TO READ:
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