The department of disinvestment (DoD) has asked the Securities and Exchange Board of India (Sebi) to give its opinion on whether management control in Hindustan Zinc Ltd (HZL) should be handed over to the strategic partner on the sale of 26 per cent stake or after the player has made an open offer for an additional 20 per cent.
The department has sought the clarification from Sebi to ensure that the government does not lose out in case the strategic partner ups the price in the open offer vis-a-vis the price paid to the government.
For example, if the buyer pays the government Rs 10 per share for 26 per cent stake and then makes an open offer at Rs 15 per share, it would have to pay an additional Rs 5 per share to the government for the 26 per cent stake.
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The Sebi guidelines require the strategic partner to make an open offer for 20 per cent equity after it buys 26 per cent stake from the government.
DoD wants Sebi to clarify whether management control should be handed over immediately after the sale agreement for 26 per cent stake is signed, or whether it should be put off pending the additional payment to the government.