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HYDERABAD, May 7

THE South African fertiliser major Fosker Ltd, an Israeli consortium of companies of Rotem Amfert Negev Ltd, and a Tunisian company Groupe Chimique Tunisian are among six major firms which have evinced interest in the strategic divestment of 26 per cent stake in the State-owned Rs 994- crore Godavari Fertilisers and Chemicals Ltd (GFCL).

The Principal Secretary to the Andhra Pradesh Government Public Enterprises Department and Chairman of Implementation Secretariat (IS), Mr Deepak Kumar Panwar, said that this development is significant considering the ongoing plans to divest the stake worth Rs 32- crore of the State Government in GFCL.

Recently, a delegation from Tunisia had visited the Godavari plant located near Kakinada.

Besides, a few domestic companies are also interested in the stake sale. They include the Zuari group and Kribhco. Already, about 14.9 per cent of the stake has been acquired by the Murugappa group-controlled Coromandel Fertilisers Ltd.

Following a decision to divest the equity, the IS, an independent body overseeing the PSE reform process, will notify the stake sale later this week.

The entire process of offer of 26 per cent equity to a strategic partner, who could provide value addition and also bring in the necessary funding to enhance the project, will be completed by August, Mr Panwar said elaborating that as per estimates, about Rs 900 crore was necessary for the company to establish a new phosphoric acid project and make other investments.

Earlier, the secretariat, which had commissioned the services of consultant Ferguson for due diligence, awaited a nod from IFFCO, the other major stakeholder (24.99 per cent) in Godavari Fertiliser to take up the divestment process.

Initially, the State Government and IFFCO had planned to initiate the divestment process together by offering the entire 51 per cent stake en block. However, in February, IFFCO had intimated its decision to go it alone and retain the stake in the company.

Detailing the divestment process, Mr Panwar said that bidding will commence with the notification at the both national and international level. It will close after a six-week period. "We expect to conclude the process by August 2003.' The company, which was established in the year 1981, with about 700 employees, has a production facility to make 8.32 lakh tonne per annum of chemical fertilisers and commands about 68 per cent share in DAP.

Coromandel could queer the pitch

IN a probable twist, the Murugappa group-controlled Coromandel Fertiliser Ltd, which has acquired about 14.9 per cent stake in Godavari Fertiliser, could change the entire process of bidding. For instance, if it acquires say about 0.1 per cent of equity from the market, and as per SEBI guidelines, it will be entitled to make an open offer for purchase of equity.

In such a possible scenario, the entire process of the Implementation Secretariat to divest the 26 per cent stake could be vitiated. When asked to comment on such a likely situation, a senior official of the IS said that "we have not factored such a development. And if the offer itself is attractive and enables us to achieve the objective of securing a higher price, so be it," he explained.

It may be recalled the Murugappa group and Coromandel Fertiliser commands a huge reserve and they have shown inclination to acquire a stake in GFCL.

They had also intimated plans for this to the State Government, sources said.

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