RIL, Essar Oil vie for pipeline co
Petronet India has decided to sell its 26% stake in PVKL through free bidding. The co controls the pipelines to evacuate products from RIL’s Jamnagar refinery and Essar’s Vadinar refinery.
By Rajeev Jayaswal, TNN |
NEW DELHI: Reliance Industries (RIL) and Essar Oil are locked in a race to take management control of Petronet VK (PVKL), the company that controls the pipeline infrastructure to evacuate petroleum products from RIL’s Jamnagar refinery and Essar’s Vadinar refinery in Gujarat. Both partners are eyeing Petronet India’s (PIL) 26% equity stake in the company, which is on the block.
PIL, one of the promoters of PVKL, has decided to sell its 26% equity stake through a free bidding process, an official said, adding that RIL and Essar Oil are PVKL’s shareholders interested in picking up the stake on sale. At present, both RIL and Essar Oil hold 13% stake each in PVKL. The other shareholders are IOC (26%), IL&FS (5%), Kandla Port Trust (5%), SBI (5%), Gujarat Industrial Investment (5%) and Canara Bank (2%).
“Since IOC, the other promoter of the company, has relinquished its right to acquire PIL’s equity in the company, it was decided under the terms of the share subscription agreement to go in for free bidding among the other interested shareholders; viz RIL and Essar Oil. Certain issues were raised by both RIL and Essar Oil before submitting their bids. These issues are nearly resolved. The bidding can take place anytime soon,” a PIL official said.
The pipeline is meant for evacuation of petroleum products from refineries of RPL at Jamnagar and Essar Oil at Vadinar. It is linked to IOC’s oil installation at Kandla where it is connected to IOC’s Kandla-Bhatinda pipelines.
PIL, a financial holding company promoted by IOC, BPCL and HPCL, is in the process of closure. It is, therefore, planning to exit from all joint ventures. Besides PVKL, the other joint venture companies of PIL are Petronet CCK (PCCKL) and Petronet MHB (PMHBL). According to company sources, while BPCL is willing to buy PIL’s equity in PCCKL, HPCL is interested in acquiring PIL’s shareholding in PMHBL.
PIL was formed by public sector oil companies IOC, BPCL, HPCL and IBP in 1997. While IOC, BPCL and HPCL each held 16% stake in the company, a 2% stake was held by IBP. RIL, Essar, SBI, ICICI and IL&FS had been other investors with 10% stake each.
PIL, one of the promoters of PVKL, has decided to sell its 26% equity stake through a free bidding process, an official said, adding that RIL and Essar Oil are PVKL’s shareholders interested in picking up the stake on sale. At present, both RIL and Essar Oil hold 13% stake each in PVKL. The other shareholders are IOC (26%), IL&FS (5%), Kandla Port Trust (5%), SBI (5%), Gujarat Industrial Investment (5%) and Canara Bank (2%).
“Since IOC, the other promoter of the company, has relinquished its right to acquire PIL’s equity in the company, it was decided under the terms of the share subscription agreement to go in for free bidding among the other interested shareholders; viz RIL and Essar Oil. Certain issues were raised by both RIL and Essar Oil before submitting their bids. These issues are nearly resolved. The bidding can take place anytime soon,” a PIL official said.
The pipeline is meant for evacuation of petroleum products from refineries of RPL at Jamnagar and Essar Oil at Vadinar. It is linked to IOC’s oil installation at Kandla where it is connected to IOC’s Kandla-Bhatinda pipelines.
PIL, a financial holding company promoted by IOC, BPCL and HPCL, is in the process of closure. It is, therefore, planning to exit from all joint ventures. Besides PVKL, the other joint venture companies of PIL are Petronet CCK (PCCKL) and Petronet MHB (PMHBL). According to company sources, while BPCL is willing to buy PIL’s equity in PCCKL, HPCL is interested in acquiring PIL’s shareholding in PMHBL.
PIL was formed by public sector oil companies IOC, BPCL, HPCL and IBP in 1997. While IOC, BPCL and HPCL each held 16% stake in the company, a 2% stake was held by IBP. RIL, Essar, SBI, ICICI and IL&FS had been other investors with 10% stake each.
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