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Distinguish between strategic and minority sale

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Distinguish between strategic and minority sale

    • Posted by Aparna Bormen 5 years, 2 months ago

    CBSE > Class 12 > Economics
    • 1 answers

    Gaurav Seth 5 years, 2 months ago

    S.N. Strategic Sale                        Minority Sale
    (i)     Strategic sate involves the sale of minimum 51 % state of a Public Sector    Unit (PSU) la the private sector. Minority sale involves the sale of less than 49% slake of a PSU to the private sector.
    (ii) The control and management of PSU is transferred to the private sector. The control and management of PSU remains with the government as it holds the majority stake.
    (iii) It is done through a process of competitive bidding and subsequent sales to the partner. Minority disinvestment are made via public offers.

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