Manager for outright sale of India’s TCIL sought
India’s government is seeking proposals for divesting the Tyre Corporation of India Limited (TCIL) through an outright sale. In a document released through the Department of Disinvestment, a part of the country’s Ministry of Finance, the Indian government stated it has “decided to disinvest 100 per cent equity shareholding held by it in TCIL through outright sale” and reported that it “proposes to engage the services of an advisor to advise and manage the outright sale process successfully.” To achieve this divestment of its Rs 296.3 million (£3.3 million) equity in TCIL, the Indian government has called for tender submissions from merchant and investment bankers, consulting firms and financial institutions with experience in this type of transaction. The deadline for submissions is 12 December 2011.
TCIL operates two units, namely a Tyre Division in Kankinara and Reclaimed Rubber Unit in Kalyani. The tyre making facility in Kankinara is currently the company’s sole operating unit. TCIL was declared a “sick company” – its losses exceeded its net work – in 1992, and in 2007 parliamentary clearance was given to divest the business.