Utkal may review project

NEW DELHI, May 21: Utkal Alumina International promoters plan to review their involvement in the 1-billion Rs 4,000 crore alumina produc...

NEW DELHI, May 21: Utkal Alumina International promoters plan to review their involvement in the 1-billion Rs 4,000 crore alumina producing project, now that Sterlite Industries and Alcan are locked in a battle for a 20 per cent stake in core promoter, Indian Aluminium Company Limited Indal.

Alcan Aluminium is also a key promoter of Utkal Aluminium. The single largest shareholder in the export-oriented alumina project is Hydro Aluminium of Norway, which has an equity holding of 40 per cent. Alcan, Indal and Tata Industries hold a 20 per cent stake each in the Rs 1,600 crore share capital of Utkal Alumina.

The company plans to make a public offer of 25 per cent of its shares, when the key promoters will dilute their holdings pro rata. Hydro Aluminium will then have a 30 per cent stake in Utkal Alumina and the other promoters retain an equity holding of 15 per cent each.

At a press meet here on Thursday afternoon, Indal vice-chairman and managing director Tapan Mitra suggested that the quot;corepromoters would have to take a viewquot; on their involvement in Utkal Alumina, after the bids close for Indal. Norsk Hydro8217;s India representative and vice-president Aage Frohde, preferred to emphasize however, that the promoters had not formally discussed the bids for Indal shares at all.

The core promoters of Utkal Alumina are scheduled to meet in Oslo sometime in the middle of June, which will be barely a fortnight after the open offers for Indal shares close on June 2. quot;Should the ownership of Indal undergo a change, core promoters of Utkal Alumina will have to take a view on their involvement with the project individually and collectively,quot; Mitra said.

Mitra did not say whether he was also speaking for Indal8217;s Canadian principal Alcan Aluminium. Incidentally, Sterlite Industries has only bid for a 20 per cent shareholding in Indal.