3 PSUs, 3 private firms join bid to acquire 40% stake in Haldia Petrochem

11-Jun-13

Despite mounting losses and a protracted legal fight at Haldia Petrochemicals Ltd (HPL), six major companies, including Reliance Industries Ltd (RIL) and state-run Oil and Natural Gas Corp Ltd (ONGC), have expressed interest in buying the West Bengal government's nearly 40% stake in eastern India's biggest petrochemical company, as per Business Standard. Cairn India Ltd, Essar Group, IndianOil Corp Ltd and GAIL India are the four other companies that filed formal expressions of interest (EoIs) today to acquire the stake. Today was the final day for joining the bid. HPL chairman and West Bengal industries minister Partha Chatterjeeconfirmed that the company got EoIs from six participants. "We have received EoIs from Essar, Cairn India, RIL, IndianOil, ONGC and GAIL India." The Purnendu Chatterjee-led The Chatterjee Group (TCG), another key promoter in HPL, has the first right of refusal. TCG has been at loggerheads with the West Bengal government over management control in the company. Besides, the firm reportedly made a loss of Rs 900 crore in 2012-13, while it was around Rs 850 crore the year before. The company has often been at the receiving end of the shareholders' dispute, and it was one of the reasons why HPL was not able to secure any fresh working capital loan from its lenders. However, a meeting of lenders is slated to happen on June 14 and they are expected to release Rs 400 crore to the ailing company as WBIDC has given in-principle approval to extend a term loan of Rs 100 crore.