First right of refusal for HPL to be given to TCG

29-Oct-12

The West Bengal government has chosen the auction route for selling off its shares at Haldia Petrochemicals Ltd (HPL). However, after the auction, the first right of refusal would be given to another promoter The Chatterjee Group (TCG), that hold 37% stake, as per Business Standard. The process is expected to get a procedural kickoff by the end of this month. “The Board of West Bengal Industrial Development Corporation (WBIDC) has already cleared the proposal for stake sale. We will procedurally kickstart the process after Laxmi Puja (October 29). However, even if it is auction route, the first right of refusal would be given to TCG, based on the highest price offered during the bidding process,” said Partha Chatterjee, chairman of HPL and the commerce and industries minister of West Bengal. According to sources, the preparation of tender document is likely to happen only after October 29. Early this month, the state government had notified the sales of its 39.9% stake in HPL. Last year, the Supreme Court had dismissed a petition by the Chatterjee Group, another major shareholder in the company, that challenged a High Court verdict that set aside a CLB directive asking the state government to exit the project by selling its stake to TCG. The disputed shares between both the major shareholders are 155 million.