Mitsui to divest its 51% stake in mining major Sesa Goa

The Economic Times reports that Japanese conglomerate Mitsui and Company has decided to sell its 51% stake in Sesa Goa, India’s largest iron ore mining company. Morgan Stanley is the advisor to Mitsui on the sale. Some of the biggest names in steel and mining have shown interest in acquiring Mitsui’s stake. These include Arcelor-Mittal, Tata Steel, JSW Steel, BHP Billiton and Rio Tinto. Sesa Goa is the only company in which Mitsui has a majority stake. The Japanese major holds an equity stake of less than 51% in some of the world’s top iron ore mines, which include companies like CVRD of Brazil and in Australia.

Related Post: Mitsui’s 51% stake in Sesa Goa up for sale

Mitsui’s 51% stake in Sesa Goa up for sale

Sesa Goa’s 51% stake held by Mitsui Corp. through its subsidiary Finsider International is up for sale. Major companies such as Arcelor-Mittal, Sterlite Industries, mining major BHP Billiton are interested in buying out Mitsui Corp. Bids from interested companies have been sent to JM Morgan Stanley, Mitsui’s advisor for the deal and are scheduled to close on Thursday.

Large-scale Indian steel players such as Tata Steel and JSW Steel, mining firm MSPL, global mining majors CVRD and Rio Tinto and the Aditya Birla group are some of the other names that are doing the rounds for bidding.

The Goan company has already attracted good interest among foreign investors, with US-based pension fund CalPERS (Californian Public Employees Retirement System) owning about 1.44% in Sesa Goa.

Read The Economic Times article.