IOC ready to acquire West Bengal's stake in Haldia

26-Dec-05

Indian Oil Corporation (IOC) is ready to acquire the West Bengal government's equity, valued at around Rs 1,500 crore (Rs 29 per share for 39% stake) in Haldia Petrochemicals Limited (HPL). This follows the commitment sought by the state government from the Centre that IOC would offer necessary funds to purchase the shares, when required, and take management control of HP IOC's firm proposal to purchase the equity shares, acquired by the government of West Bengal from The Chatterjee Group (TCG) group on a back-to-back basis, follows the in-principle consent to the petroleum ministry. Purnendu Chatterjee of TCG had moved the CLB against the state government's decision to sell its stake to IOC. As an out of court settlement, the state government had proposed offering its equity shares to the TCG group (having first right of refusal) for purchase at a pre-estimated price of around Rs 29 a share. Considering the cash crunch being faced by TCG, the state government intends to buy out the entire shareholding of TCG group in HPL at the same price.