MSTC Sells FSNL to Konoike Transport: Strategic Disinvestment Complete

New Delhi, Jan 21 (PTI) The strategic disinvestment of FSNL, a wholly owned subsidiary of MSTC Ltd, concluded on Tuesday with the transfer of full shareholding to Konoike Transport Co Ltd, the Department of Investment and Public Asset Management (DIPAM) said.

In September last year, the government had approved the privatisation of FSNL to Japanese corporation Konoike Transport Co Ltd for Rs 320 crore.

Following that, a share purchase agreement was signed in October.

"The strategic disinvestment transaction of FSNL (a wholly owned subsidiary of MSTC Ltd) has successfully concluded today with transfer of 100% shares of FSNL by MSTC to Konoike Transport Co. Ltd. along with management control. A new Board, led by the Strategic Partner, takes charge of FSNL," DIPAM said on X.

Under the steel ministry, FSNL is a 100 per cent subsidiary of MSTC Ltd.

The government had received two technically qualified financial bids for the company.

The Rs 320 crore bid by Konoike was higher than the reserve price of Rs 262 crore set by the government on the basis of valuation carried out by the transaction adviser and asset valuer.

The strategic sale of FSNL received two technically qualified financial bids. The other bid was of Indic Geo Resources Pvt Ltd (a subsidiary of Chandan Steel Ltd).

Konoike Transport Co Ltd is a multifaceted Japanese corporation listed on the Tokyo Stock Exchange.

Konoike's Steel Division is a long-established segment of the company, with over 140 years of experience in steelworks operations. The division provides comprehensive services ranging from raw material acceptance to manufacturing processes, slag treatment, scrap processing, examination, packaging and delivery of steel products, supporting customers' operations.

The division also engages in recycling projects, such as the perfect recycling system, which recycles industrial waste without producing secondary waste.

FSNL was incorporated on March 28, 1979, to provide steel mill services.

FSNL specialises in the recovery and processing of scrap from slag generated during iron and steel making across different steel plants.