Financial Daily from THE HINDU group of publications
Tuesday, Sep 17, 2002
Financial Daily from THE HINDU group of publications Tuesday, Sep 17, 2002 |
|
|
|
|
|
Industry & Economy
-
Disinvestment KPMG advisor for sell-off of Punjab Tractors Our Bureau
NEW DELHI, Sept. 16 THE Punjab Government has appointed KPMG, the consulting firm, as advisor for disinvestment of the State Government's equity in Punjab Tractors Ltd (PTL), the second largest tractor company in the country. According to a top official of the Department of Disinvestment (DoD), KPMG was selected as advisor from a list of 21 aspirants who had submitted their applications for the job. The next stage in the disinvestment process is the expression-of-interest which will be invited from the prospective bidders within a month's time. During this period, KPMG will be working on the valuation of PTL, the State DoD official said. According to industry analysts, the multinational companies are more likely to emerge as the key contenders for PTL, principally because of the high cost of the transaction. Also, a major stake in PTL will give the successful MNC an instant foothold into the Indian tractor market. The country's largest tractor company, Mahindra & Mahindra too, has evinced interest in picking up the equity stake on offer in PTL, which will further ensure that its leadership position remains unchallenged. Industry analysts are of the view that if the disinvestment package for the PTL deal is inclusive of Swaraj Mazda and Swaraj Engines, then the price tag could well be upwards of Rs 700 crore. However, analysts are quick to point out that the current situation is likely to have an adverse impact on the valuation of PTL. This is because the tractor industry is already in bad shape, suffering as it is from excess capacity coupled with the adverse effects of drought. Besides, PTL's performance in the first quarter this fiscal has not been good either.
Send this article to Friends by E-Mail
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | The Sportstar | Frontline | Home |
Copyright © 2002, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|