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ESCO, IRALCO Finally Pull Off Block Sales

ESCO, IRALCO Finally Pull Off Block SalesESCO, IRALCO Finally Pull Off Block Sales

The spell is finally broken, as Iranian Privatization Organization has sold two controlling stakes in Esfahan Steel Company and Iran Aluminum Company following several unsuccessful attempts.
This is definitely good news for Iran Steel Pensioners Fund—the owner of both stakes—whose financial troubles in recent years have made it unable to take care of its own members.
The 16.75% stake in ESCO was sold on the over-the-counter exchange Iran Fara Bourse on Wednesday, in what was IPO’s fifth attempt to sell the block.
The privatization organization had cut down the price on the 5.55 billion-share block each time to no avail. Its final attempt set the base price at 750 rials (1.6 cents) per share, which was about 15% less than ESCO’s closing price on Wednesday.
As an interesting twist in the steelmaker’s saga, the 16.75% was sold to a member of ESCO’s family—Pouyesh Commerce Esfahan Steel Company, a firm established in 2015 by ESCO and engaged in marketing the company’s products.
 

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