BIFR, lenders reject IDBI bid to sell Hindustan Antibiotics
13 November 2002
BIFR has directed the operating agency IDBI to formulate a viable package for HAL and the institution has already initiated fresh talks with the HAL management to revive the operations of the company.
Following the open bid invited in June 2002 by IDBI, the Mumbai-based KP Sales Group had evinced interest to acquire HAL. As per the agreement reached between IDBI and KP Sales, the current outstanding liabilities would be settled by the new promoter, disposing of the surplus land of 350 acres.
This package was not acceptable to BIFR and lenders like State Bank of India. We have been asked to rework a fresh package for HAL, says a senior IDBI official. However, she was reluctant to divulge more details on the subject.
The lenders also pointed out that KP Sales has no expertise to run a pharma company like HAL and the take-over price quoted by the company was too small even to consider its bid proposal.