DJ News reported that a consortium led by Jindal Steel and Power Limited has been short listed as one of two bidders to buy a majority stake in state owned Zimbabwe Iron and Steel Co.

A person familiar with the matter said that JSPL has teamed up with the Investment Development Corporation of South Africa and the Development Bank of South Africa to bid for a majority stake in the plant.

The person said that the government is interested in selling a 60% stake in the steelmaker and is expected to announce a final bidder in the next one to two weeks.

The person wasn't able to say how much the consortium was bidding for a stake but he said once the deal has been completed, JSPL will own a 51% stake in the consortium while IDC will own the remaining 49% stake in the consortium. The person added that the DBSA is playing a financing role in the deal and therefore won't own a stake in the consortium once the deal is completed.

The Zimbabwe government, which owns an 89% stake in Ziscosteel, previously did not have intentions to sell but the new coalition government, installed in February, and believes that selling assets would be an important step in economic reform.

Dow Jones Newswires had previously reported that the second shortlisted bidder is ArcelorMittal South Africa Ltd, a unit of the world's largest steelmaker ArcelorMittal.

(Sourced from Dow Jones Newswires)