The public enterprise department of the Andhra Pradesh government has decided to invite expressions of interest from all the interested parties for sale of its stake in Tata Motors, ACC, VST, Sirpur Paper Mills and Hyderabad Industries.

In the case of Andhra Pradesh Paper Mills, the public enterprise department will finalise its strategy only after the ongoing share valuation exercise is over.

However, as far as VST is concerned, it has decided to go ahead and approach all the shareholders owning more than one per cent.

In the case of Nagarjuna Fertilisers, the department has deferred divestment as it feels the time is not right yet.

As per the schedule finalised by the public enterprise department, a formal public announcement will be made on August 6. Interested parties will have to submit their expressions of interest by 4 pm on August 14.

The closing date for receipt of price offers with earnest money deposit of 25 per cent of the offer price is August 29. Divestment in five companies is expected to be completed by September 15.

The state government holds 759,000 equity shares (0.44 per cent) in ACC, 723,000 shares (4.69 per cent) in VST, and 16.23 lakh (1.6 million) equity shares (0.51 per cent) in Tata Motors.

The state government also holds 30 lakh (3 million) equity shares (25.36 per cent) in Andhra Pradesh Paper Mills, 529,000 equity shares (6.35 per cent) in Sirpur Paper Mills, 1.95 crore (19.5 million) equity shares (4.68 per cent) in Nagarjuna Fertilizers, and 305,000 equity shares (4.27 per cent) in Hyderabad Industries. It also holds 10.83 lakh (1.08 million) equity shares (8.82 per cent) in Bakelite Hylam.

"We hired professional consultants to do the share valuation, which will form the basis for assessing the offers. An evaluation committee will assess the offers and they would be compared with the reference prices and market prices of the shares. Sebi's formula will also be considered," the public enterprises department said in a release.

The divestment of the government's stake in AP Papers was separated from the rest, as the government holds a significant 25.36 per cent. Kolkata-based L N Bangur & associates are the co-promoters.

L N Bangur, who owns 46.35 per cent in AP Papers, has already met officials of the public enterprises department and expressed his interest to acquire the government's 25.36 per cent stake in the company.

The Bangurs and the state government have an agreement in place in the case of AP Papers. The public enterprise department is exploring all the options that are available within the context of that agreement.