Metal and mining magnate Anil Agarwal in race to buy SCI

As per sources, Anil Agarwal, the metal and mining magnate is in race to buy Shipping Corporation of India Ltd (SCI) from the government.

Due diligence

According to industry executives and one of the sources said that Vedanta Resources’ founder is believed to have carried out due diligence of India’s biggest ocean carrier along with three other bidding groups.

The participation of Agarwal in the privatisation of Shipping Corporation has not been reported in the media.

Agarwal joins US-based Safesea Group, Hyderabad-based Megha Engineering & Infrastructures, and London-based Foresight Group International for the deal.

The Foresight consortium includes the group’s flagship company Foresight Offshore Drilling Limited; Belgium-listed shipping company Exmar; and Dubai-based shipping company GMS DMCC.

“Agarwal has emerged the dark horse in the fray,” said the source. The Department of Investment and Public Asset Management (DIPAM), the asset sale ministry has initiated the process of privatising Shipping Corporation of India by selling the government’s 63.75 percent stake to a strategic buyer.

Non-core assets

On August 3, the board of SCI approved the scheme of arrangement for the de-merger of non-core assets of SCI. Shareholders will get one equity share each in the resulting company for each share held by them in the de-merged company (SCI), according to the de-merger scheme.

The company formed to manage the non-core assets will be listed on the stock exchanges.

Earlier this month, the Ministry of Ports, Shipping and Waterways approved SCI’s draft scheme of arrangement for the de-merger of its non-core assets.

SCI runs a fleet of 59 ships of various cargo types and capacities.