Reliance Industries Ltd (RIL) and Indian Oil Corporation (IOC) are the frontrunners to buy the West Bengal government’s 31% stake in the ailing Haldia Petrochemicals Ltd (HPL). The stake is valued at between Rs. 2,000 crore and Rs. 2,700 crore and final price bids are expected in October. A final decision on HPL’s stake sale will, however, be taken by the group of ministers (from the West Bengal government) on HPL. Deloitte is the transactional advisor for HPL divestment.
The West Bengal government holds a 39.9% stake in HPL through West Bengal Industrial Development Corporation (WBIDC), all of which was earlier put on the block. However, HPL’s co-promoter the Purnendu Chatterjee-led The Chatterjee Group (TCG) has staked a legal claim on a 9.18% slice of the state’s shareholding. So, the remaining 31% was offered to the bidders with the understanding that the decision on the balance disputed stake will be made after the Supreme Court’s decision. TCG, which has a 41% stake in HPL, will get a month’s time to match the price of the highest bidder as it has the right of first refusal. IOC already holds an 8.89% stake in the petrochemical company.
18-Sep-13 
{{comment.DateTimeStampDisplay}}
{{comment.Comments}}