Purnendu Chatterjee to approach Vedanta Group to bail out in Haldia Petrochemicals imbroglio

22-Dec-11

Purnendu Chatterjee, promoter-investor in Haldia Petrochemicals Ltd (HPL) is believed to have approached Mr Agarwal, who owns the US$12 bln mining and metals Vedanta group, to bail him out of the Haldia Petrochemicals imbroglio, as per telegraphindia.com. Chatterjee is trying to protect his position in HPL- the petrochemical joint venture in which his TCG Group and the Bengal government hold the largest stakes. Bengal state government intends to auction its entire holding of 67.5 crore shares in HPL - a 43.29% stake. The planned auction - a transparent bidding process is expected to yield the best valuation for its stake. Chatterjee holds a right of first refusal before any share transaction can take place. The Bengal government is expected to ask him to match the highest bid thrown up in any auction. TCG has already contested the Bengal government's right to conduct an auction and insists that the shares should be sold at a mutually agreed valuation. At the same time, he is trying to draw a subtle distinction between the 15.5 crore shares held by the government that the Left Front regime had offered him in 2002 and the remaining 52 crore shares.The first tranche had been offered to him at extremely favourable terms. The transfer of this stake will make TCG the majority shareholder in HPL. TCG wants this transfer to take place immediately. Purnendu Chatterjee wants the remaining 52 crore shares transferred at a price discovered through a process of valuation by an independent firm.