FTIL to shortlist bidders to buy MCX stake by Apr 25
Apr 12 2014 , New Delhi
FTIL is making all efforts to complete the proposed sale of its stake in MCX by April 25 and has called for a Board meeting on that day to finalise the bidders, the company said in a statement.
Jignesh Shah-promoted FTIL has to reduce its stake in MCX to 2 per cent from the current 26 per cent to comply with the regulatory norms following the NSEL payment crisis of Rs 5,600 crore.
FTIL has appointed a committee to oversee its restructuring plan, which includes divesting its take in MCX. The panel met yesterday.
In a statement, FTIL said, "The Restructuring Committee received non-binding bids from nine prospective investors, which includes marquee Indian and global conglomerates."
The committee has completed the process of shortlisting of the parties with whom FTIL's appointed banker JM Financial will take the discussion forward, it said.
The shortlisted bidders have sought interaction with the MCX management and customary due diligence as a pre-condition to the said sale.
The committee has decided to shortlist the bidders by April 25 and will recommend the same to the Board of FTIL, after the due diligence request of bidders is completed by MCX, it added.
FTIL said it is making all efforts to "complete the proposed sale of its 24 per cent equity stake in MCX by April 25, 2014." A Board meeting on April 25 has been called for selecting the final bidders, it added.
FTIL mentioned that it will write to the MCX Board seeking its cooperation for management interaction with the shortlisted bidders and customary due diligence to enable proposed sale within the defined timelines.
The company will also write to regulator Forward Markets Commission (FMC) seeking its support and cooperation in the matter. It will update FMC periodically on the progress made in the stake sale process, it added.
Shah-led group as well as FTIL are grappling with multiple woes in the wake of the Rs 5,600 crore payment crisis at the group firm National Spot Exchange Ltd (NSEL).
FMC had ruled that FTIL and Shah were not 'fit and proper' to hold more than 2 per cent stake in any commodity exchange. The order has been challenged in the court.