RP to negotiate sale of steel firm

RP to negotiate sale of steel firm

MANILA (AFP): The Philippine government is open to a
negotiated sale of 65 percent of the National Steel Corp. (NSC)
after several attempts to auction it failed, Trade Secretary
Rizalino Navarro said here yesterday.

Navarro said the government expected to sell 65 percent of NSC
for more than the 6.3 billion pesos (US$233 million) previously
offered by Exchange Capital Corp., a consortium controlled by
Magnum Holdings Inc. of Malaysia.

But he admitted it had given up hope of selling the steel
group at the previous asking price of 7.5 billion pesos after
failing to attract bidders.

Navarro said four groups that had previously asked to
participate in the auction -- Wing Tiek Holdings Corp. Bhd. of
Malaysia, Nippon Denro Ispat of India, Exchange Capital and a
local consortium, AIA Capital Corp., indicated continued interest
in acquiring the company "on a negotiated basis."

The sale of shares in NSC, the country's largest steel firm
and 12th largest company, would have gone to retire debt a state
holding company incurred in infusing equity into NSC.

The block of shares was previously estimated to be worth 10
billion pesos, but this was lowered after the failed first
bidding last month.