Govt now goes for Jessop sale

Govt now goes for Jessop sale
ENS ECONOMIC BUREAU

FEB 26: Even as the smoke generated over strategic sale of public sector undertaking Bharat Aluminium Company Limited (Balco) to Sterlite Industries remains a far distance from being settled, an expression of interest (EoI) has been invited for sale of 72 per cent equity in Jessop & Co Ltd, the Kolkata-based sick unit.

Jessop is a subsidiary of government of India undertaking Bharat Bhari Udyog Nigam Limited (BBUNL) which holds 98 per cent of the former's equity. The newspaper announcement regarding EoI states BBUNL wishes to disinvest 72 per of the equity capital of Jessop to a strategic partner with transfer of management control.

Invitation for EoI in Jessop comes at a time when opposition parties were up in arms against BJP-led NDA government for selling Balco to private sector Sterlite Industries at a `throwaway' price of Rs 551 crore.

Jessop, established in 1788 is engaged in the design, manufacture and supply of diversified range of heavy engineering equipment and systems. The company's main divisions are - structural and mechanical works, coach works, road construction equipment division and paper, mining and hydraulic division.

A F Ferguson and Company (AFF) has been retained as advisor to BBUNL in connection with the proposed sale. The announcement further said BBUNL may also consider alternate proposals by the prospective buyers with respect to the mode and the extent of disinvestment in Jessop.

The interested parties have been asked to submit their EoI along with a request for qualification before March 23, 2001 to Delhi or Kolkata offices.

More information pertaining to Jessop and pre-qualification requirements could be accessed from BBUNL's website, it added.