The government has re-invited initial bids for divesting its 33.5 per cent stake in Madras Fertilisers Ltd to a strategic partner along with management control.

In an advertisement issued in dailies on Wednesday, the gvernment said while Expressions of Interest were being re-invited for sale of up to 33.5 per cent of its equity in MFL, another stakeholder in the public sector fertiliser firm, National Iranian Oil Company, would sell its entire 25.7 per cent equity in MFL to the same strategic partner.

"However, in the event of the government deciding to offer a part of its equity to the employees of MFL, the same will be out of the 33.5 per cent shareholding," it said.

In effect, the total equity on offer may be up to 59.27 per cent of MFL's total equity.   

Interested parties would be required to submit their EoI by June 30.

The government currently holds 59.5 per cent stake in MFL, NIOC holds 25.77 per cent and 14.37 per cent stake is with the public.

The Centre had earlier invited EoIs for divestment of 32.74 per cent shareholding in MFL in November 2000, when a number of companies had evinced interest.

Since then, the government has notified the seventh and eighth pricing period policy parameters and announced the long-term pricing policy for urea. Also, restructuring of the existing debt of MFL is being considered.

The re-inviting of bids is on account of the changes in prospective business and operating environment of MFL.