WB govt to sell Haldia stake to TCG

The West Bengal government has in principle agreed to sell its stake in Haldia Petrochemicals (HPL) to The Chatterjee Group (TCG). West Beng...

The West Bengal government has in principle agreed to sell its stake in Haldia Petrochemicals (HPL) to The Chatterjee Group (TCG).

West Bengal Industries Minister Nirupam Sen told reporters on the sidelines of a Ficci meeting that TCG has indicated that it was agreeable to the price quoted by the government (earlier reported to be about Rs 30 per share) and talks are on to finalise the deal.

‘‘We hope to give a final shape to it by Friday or the day after,’’ he said, referring to the HPL board meet scheduled for May 28, when he hoped the pact will be discussed.

The government has been pursuing an exit from Haldia and has taken up the move with a greater urgency since TCG’s bid for Basell proved successful earlier this month. Haldia, spearheaded by TCG, has been negotiating with financial institutions led by IDBI to raise Rs 2,500 crore to part-fund the $5.7 billion acquisition deal.

Sen said the government’s stake in HPL since it acquired part of the Tatas’ stake and in the post-CDR phase, is still pretty fluid. When last reported, TCG’s stake in Haldia stood at 59 per cent (Rs 845 crore), while the government’s stake came to 36 per cent (Rs 520 crore) and the Tatas’ 3.19 per cent (Rs 520 crore), on an equity base of Rs 1,410 crore.

There is also a contentious Rs 150 crore cheque from IOC (for a 7.5 per cent stake in HPL) pending to be encashed. Market sources say TCG is stalling the stake transfer while the government has been threatening to sell its stake to IOC if TCG failed to pick up its stake.