TCG to approach High Court to challenge a bid by Indian Oil Corp for Haldia Petrochemicals

06-Nov-13

The Chatterjee Group (TCG) is set to approach the Calcutta high court this week, to challenge last month’s selection of Indian Oil Corp. Ltd (IOC) as the highest bidder for the West Bengal government’s 40% stake in Haldia Petrochemicals Ltd (HPL), as per Livemint.com TCG, a co-promoter of HPL, is the single largest shareholder with a 41% stake, and it has the right of first refusal on West Bengal Industrial Development Corp. Ltd’s (WBIDC) 675 million shares in the firm, which the state proposes to sell to the state-run oil marketing firm unless TCG matches its bid of Rs.25.10/share. TCG, which will have to pay around Rs.1,700 crore to claim WBIDC’s stake in HPL, is of the view that the state government did not share details of IOC’s bid, such as conditions attached to its Rs.25.10/share bid. It only mentioned the price that TCG would have to pay if it wants to buy WBIDC’s shares, according to a person familiar with the situation. The state government did not even name IOC as the selected bidder in its communication sent to Chatterjee Petrochem (Mauritius) Co., soon after a panel of state ministers decided on 10 October to accept the oil marketing company’s bid and conclude the auction. “TCG is raising these issues because it does not have the money to match IOC’s bid,” added Chatterjee, who is also HPL’s chairman. The state government followed the “letter of the law” while honouring TCG’s right of first refusal on WBIDC’s stake, said one of the state’s key advisers. “If it wants to know the conditions attached to IOC’s offer, it can always seek clarification from WBIDC,” this person said, speaking on condition that he would not be named.