NBCC Selloff Attract EoI From Staff, CitiBank Private Equity

New Delhi, Jan 28: | Updated: Jan 29 2004, 05:30am hrs
Employees of National Building Construction Corporation (NBCC) along with CitiBank Private Equity have submitted their expression of interest (EoI) to acquire the governments stake and management control in the public sector company.

The government is set to divest 74 per cent out of its 100 per cent holding in the Rs 500-crore public sector construction giant.

Escorts Securities is advising a forum of NBCC employees for deal structuring, valuation assessment and price-bid submission. The company has roped in CitiBank Private Equity, a subsidiary of the Citigroup, as the financial partner for the expression of interest for acquisition of the government stake in NBCC.

According to a source, as many as 10 parties, including IVRC Infrastructure and Projects and Ebony Retail, have already submitted their expressions of interest for acquiring the major part of the governments stake in NBCC.

The source added that about 20 application documents for the expression of interest have already been sold.

According to Escorts Securities, The employees are confident that they would continue the growth story of NBCC.

The company added that the employee participation in management would add value to the post-bid performance of the company as the employee control and sharing of the companys performance would be a strong motivator.

The employees of the company had so far been against the disinvestment process. They has earlier formed a forum and submitted a memorandum to the Prime Minster Atal Bihari Vajpayee against the move alleging that the company was being sold at a value which was calculated taking fiscal 2001 as the basis.