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.