Search the Internet          Tips  Sites: Finance, Investment

Three bidders withdraw from Balmer-Lawrie divestment

Three out of the 16 bidders - Aban Lloyd, IVRC and the UK-based CDC - have withdrawn from the divestment process of Balmer-Lawrie & Company.

The 13 companies that are now in the fray include ABG Heavy Industries, Adani group, BMW Industries, Orissa Cement, Patton and Gujarat Glass.

The divestment process was progressing smoothly, sources said, adding that the data room of the company would be thrown open to the bidders tentatively from November 5 and would be kept open for one month.

The government expects to net around Rs 90 crore (Rs 900 million) from the sale of the four businesses of Balmer Lawrie, according to the proposal.

The four businesses for which strategic partners will be invited are travels and tours, chemicals, container freight stations besides tea blending and exports.

According to the proposal, once the four businesses are sold off by around December, Balmer Lawrie Ltd with the remaining businesses such as packaging, grease and IT services can be privatised.

The government holds 59.6 per cent in Balmer Lawrie Investments Ltd (a shell company), which in turn holds 61.79 per cent in Balmer Lawrie Ltd. This arrangement was put in place when IBP Ltd was divested.

The company recorded a turnover of Rs 730.64 crore (Rs 7.31 billion) and a profit after tax of Rs 8 crore (Rs 80 million) for fiscal 2001-02.

Established in 1867 by two Scotsmen, George Stephen Balmer and Alexander Lawrie, the company is a diversified multi-activity, multi-technology, multi-location conglomerate.

Balmer Lawrie became a private limited company in 1924 and a public limited company in 1936. In 1972 Balmer Lawrie became a subsidiary of Indo Burma Petroleum Co Ltd (presently known as IBP Co. Limited).

ALSO READ:
The Divestment Development
More Money Headlines

Tell us what you think of this report