WBIDC appoints advisor for HPL share sale

The West Bengal government’s industry promotion arm WBIDC has appointed management consultancy firm Deloitte as a transaction advisor for the proposed sale of its shares in beleaguered Haldia Petrochemicals Limited (HPL).

“Deloitte has been appointed as a transactional advisor for valuation of HPL’s shares,” Commerce and Industry Minister Partha Chatterjee told PTI here.

He said the consultancy firm would evaluate the shares of the company after which WBIDC would put its entire block of shareholding in HPL for auction. Chatterjee said TCG of Purnendu Chatterjee would be offered the shares at the highest price arrived at the auction to exercise its right of first refusal.

“If TCG declines to buy the shares at that price, then the shares will be offered to the highest bidder,” he said.

By virtue of holding nearly 39 per cent shares in HPL, WBIDC is the majority shareholder in the company.

WBIDC has already invested around Rs 835 crore in HPL.

When asked if the highest auction price was insufficient for WBIDC to recover its investments made in the company since HPL was making huge losses at the moment, Chatterjee said “the agency’s board will take a decision then.”

Meanwhile, the company was operating at half of the installed capacity due to acute working capital crunch.

HPL sources said the banks were also not forthcoming in extending badly-needed assistance to the company.