Bengal plans buying out Tata stake in Haldia

the west bengal government is considering buying out the tata group stake in haldia petrochemicals. once such a formal decision is taken by the state government, it will push up the latter's stake in hpl from 43 per cent at present, to 57 per cent on a paid-up equity capital base of rs 1,010 crore. consequently, the other equal partner in the company — purnendu chatterjee with a holding of 43 per cent will become a minority stakeholder in hpl. talking to et, the state industries minister, nirupam sen said, the tatas are determined to exit hpl as it does not fit their core competencies. there is no point in persuading them to stay on. the state government is actively considering buying out the 14 per cent sake held by the tatas. a solution to the present impasse will emerge soon.... acceptable to the promoters and the financial institutions, mr sen said. a final decision on the stake buy out will be taken once the financial restructuring of hpl is complete, he added. hpl with an authorised capital of rs 1,970 crore, is looking at more fund infusion to bridge a rs 960 crore gap in its equity, either from the existing promoters or from a new partner like indian oil corporation (ioc). the joint venture agreement between the state government, tcg and tatas gives the ` first right of refusal' to any of the partners in case of stake sell out by any one of them. if the state government does exercise this right and does not pick up the stake, the offer automatically goes to tcg. top sources said that the state government decision to buy out the tatas stake and take up a majority position in hpl is aimed to challenge tcg's objection to sell out to ioc at par. ioc is ready with a kitty of around rs 500 crore to pick up a 26 per cent stake at par along with a management control in hpl. tcg top brass mr purnendu chatterjee, however, insists that additional fund infusion is not a problem for him. neither is he objecting to ioc's entry in hpl. we have to consider the whole issue in terms of viability of the project, pointing out hpl's high debt cost and short term loans. tcg sources said that we have asked the government to carry out their own valuation of hpl and decide on whether to sell out to ioc at par or not. we have no objection if ioc enters the jv by paying up a small premium on the equity. the idbi-led institutional consortium has already informed the promoters that a final view on the recast proposal would only be taken once the promoters decide on issue of management control in hpl.

Bengal plans buying out Tata stake in Haldia

THE WEST Bengal government is considering buying out the Tata group stake in Haldia Petrochemicals. Once such a formal decision is taken by the state government, it will push up the latter's stake in HPL from 43 per cent at present, to 57 per cent...

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