West Bengal Government, Chatterjee Group work towards reconciliation for Haldia

13-Jun-14

The lead promoters of Haldia Petrochemcials- the West Bengal Government and The Chatterjee Group (TCG), are finally walking the reconciliation path. Sources told Business Line that the State Government may now agree to sell half of its undisputed 31% (520 mln shares) in the project to Purnendu Chatterjee-led TCG at the auction-derived price of Rs 25.10 a share (of Rs10 face value each), totalling Rs 652.6 crore. This would raise Chatterjee’s holding in the company to 55% from the current 41%. The share price was derived through an auction held in October 2013. IndianOil Corporation, which holds a 9% stake in the project, was the lone bidder for the 67.5 crore shares put on the block by the State Government. The offering included 15.5 crore (9%) of disputed shares. The proposed deal is not free from loopholes. According to the norms of the bidding held in October, Chatterjee had a first right of refusal over the shares. But the offer was slated to be time barred. The price was derived on the basis of the State’s promise to offload 67.5 crore shares, not less than that. Besides, the State Government is yet to communicate about the fate of the auction to IndianOil. To get the deal through, the West Bengal Government (and TCG) has to take IOC and the Union Government into confidence, say sources.