Share transfer of HPL to TCG a complex transaction: WBIDC

KOLKATA: The proposed partial transfer of West Bengal Industrial Development Corporation ( WBIDC) shares in Haldia Petrochemicals Limited ( HPL) to TCG was a complex transaction with lots of conditionalities, a source in the state agency said.

"The share sale agreement with TCG is a complex negotiation and a complex transaction as lenders are involved", an official of WBIDC told PTI.

The official said that the Competition Commission of India (CCI) had cleared TCG's proposal to hike its stake in HPL by acquiring shares from WBIDC.

TCG group company Essex Development Investments (Mauritius) Ltd would acquire 15.4 per cent stake in Haldia Petrochemicals Ltd (HPL) from WBIDC.

WBIDC's aggregate shareholding in HPL was around 34 per cent.

The official said that although the CCI had cleared the proposal, TCG was yet to pay up for the money required for buying out the shares.

According to the agreement, Purnendu Chatterjee-owned TCG was to pay Rs 1300 crore to WBIDC in two equal tranches.

The HPL plant was lying closed for more than five months owing severe lack of working capital, while it managing director Uttam Basu, who term was to end on December 31, 2014, had already resigned.

Post the deal, TCG's overall shareholding in HPL would increase to about 55 per cent giving ownership control.