Disinvestment Commission favours sale of Andrew Yule
The comission also favoured offering 40 per cent stake in Indian Vaccine Corporation to IPCL.business Updated: Feb 05, 2004 14:32 IST
Disinvestment Commission on Thursday recommended privatisation of Kolkata-based conglomerate Andrew Yule and Co and favoured offering 40 per cent stake in Indian Vaccine Corporation to IPCL.
In its 24th report submitted recently to Government, the Commission categorised AYCL as non-strategic arguing there was no rationale for the company to continue as a PSU.
The report said the Government should sell its entire equity amounting to 93 per cent in the multi-product, multi-location company to a strategic partner and provide for restructuring in consultation with the prospective bidders.
AYCL, whose history dates back to British Raj, was set up in 1863 before becoming a PSU in 1979. It currently acts as a group company holding stake in a number of companies including Hooghly Printing and Tide Water.
The panel also favoured disinvestment of equity in AYCL group companies and asked the government to implement transfer of 26 per cent stake in Descon to AYCL.
It said in case a suitable partner could not be found, then the sale should be undertaken on a divisional basis after demerger of the units.
AYCL is currently organised into four units including tea and electrical divisions with most of the operations in losses. The company has been posting losses for the past three years and was referred to BIFR. The scrip trades on Kolkata and Bombay stock exchanges.
In the case of Indian Vaccine Corporation, the Commission favoured offering 40 per cent Government equity to promoters IPCL with the right of acceptance and refusal.