RIL, IndianOil lead race for 31% Haldia Petro stake
New Delhi   18-Sep-2013

A clash of titans is on the cards over the acquisition of the West Bengal government’s 31% stake in the ailing Haldia Petrochemicals Ltd (HPL). Mukesh Ambani’s Reliance Industries Ltd (RIL) and IndianOil are the frontrunners to buy the stake offered by the West Bengal government.

Sources said the stake is valued at between Rs. 2,000 crore and Rs. 2,700 crore and final price bids are expected in October “We should be able to announce the winners in two to three weeks,” a senior government official told HT. “A final decision on HPL’s stake sale will, however, be taken by the group of ministers (from the West Bengal government) on HPL.”

Besides, RIL, India’s largest private sector company, and IndianOil, the country’s biggest commercial enterprise, ONGC, GAIL, Jindal Steel and Power, Essar Group and NRI billionaire Anil Agarwal’s Cairn India have also evinced interest in the company.

The West Bengal government holds a 39.9% stake in HPL through West Bengal Industrial Development Corporation (WBIDC), all of which was earlier put on the block.

However, HPL’s co-promoter the Purnendu Chatterjee-led The Chatterjee Group (TCG) has staked a legal claim on a 9.18% slice of the state’s shareholding. So, the remaining 31% was offered to the bidders with the understanding that the decision on the balance disputed stake will be made after the Supreme Court’s decision.

Deloitte is the transactional advisor for HPL divestment. TCG, which has a 41% stake in HPL, will get a month’s time to match the price of the highest bidder as it has the right of first refusal, the sources said.