TCG to pay Rs 1,500 crore for state government shares in Haldia

24-May-05

The West Bengal state government, which invested in the project through West Bengal industrial development corporation (WBIDC), is unlikely to continue as a shareholder in HPL. This is because of HPL's possible involvement in Basell Polyolefins, recently acquired by a TCG-led consortium. The involvement of HPL in Basell implies that the West Bengal government is also investing its funds abroad - an awkward position to be in. The HPL board is likely to meet within 15 days to discuss these issues and subsequently pave the way for HPL's entry in Basell-acquisition financing. The Chatterjee Group (TCG) is willing to pay Rs 1,500 crore to buy out West Bengal government's 43% shares in Haldia Petrochemicals Ltd. (HPL). TCG already has a 43% stake holding in HPL. The West Bengal government is seeking nearly Rs 30 per share. This deal is likely to be completed within a month. TCG is also trying to refinance its existing loans and reduce the average interest load by another 1% from 10.5% to 9.5%. Pre-CDR, the company was paying an interest of 16%.