| Corporation moots setting up of committee of secretaries
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| Hindustan Petroleum Corporation Ltd (HPCL) has sought permission from the government to bid for 41.98 per cent equity of Tide Water Oil Company India Ltd (TWOL).
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| The corporation has written to the government asking for a committee of secretaries of the concerned ministries to be set up for the purpose, official sources said.
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| It is likely that the other state-owned oil major Bharat Petroleum Corporation Ltd (BPCL) may also ask for permission to bid. BPCL had evinced interest in TWOL in June last year, sources added.
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| The ministry of heavy industries, which is the administrative ministry for TWOL, has also finalised the share purchase agreement and shareholder’s agreement for the company.
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| The agreements are likely to be put up before the Cabinet committee on disinvestment (CCD) on October 3. The ministry would be calling for financial bids once the CCD gives its clearance.
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| TWOL’s product line includes Veedol and Nippon Mitsubishi. For the latter TWOL had entered into a technical collaboration with Nippon Mitsubishi Oil Corporation in 1993-94.
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| The company, which is primarily manufactures and markets automotive and industrial lubricants, has been one of the few companies under the heavy industries ministry, which has consistently made profits from 1998-99.
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| In 2001-02 its profits were Rs 10 crore, which went up to Rs 12 crore in 2002-03. The turnover of the company was Rs 187 crore in 2001-02 and Rs 189 crore in 2002-03.
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| Besides HPCL and BPCL, the other companies which had submitted their expressions of interest last year, were Shell India, Castrol India and Nippon Mitsubishi Corporation. Sources said these companies are expected to put in their financial bids for TWOL.
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| TWOL is a subsidiary of Andrew Yule & Company Ltd which holds 27.71 per cent equity in the company. United India Insurance and Life Insurance Corporation hold 14.27 per cent stake, while corporates, non-resident Indians and the public hold the other 21.78 per cent, 0.28 per cent and 13.50 per cent.
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| The strategic investor in the company will be offered the combined stake of 41.98 per cent held by Andrew Yule, United India and LIC. AF Ferguson has been appointed as the advisor for the disinvestment. |
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