Singapore's Netoil in talks to buy Nagarajuna share in NOCL

Singapore-based Netoil is in talks to acquire Nagarjuna Oil Refinery Ltd's entire 46.78 per cent stake in Nagarjuna Oil Corp Ltd, which is building a Rs 25,000 crore refinery at Cuddalore in Tamil Nadu.
"Netoil (Singapore) (PTE) Ltd (Netoil), Singapore, is undertaking due diligence towards the acquisition of the entire equity capital held by the company (Nagarjuna Oil Refinery Ltd) in NOCL," NORL said in a filing to stock exchanges.
NORL holds 46.78 per cent in NOCL.
The acquisition, the company said, is subject to due diligence, approval by the existing promoters and other shareholders, approval of lenders and the Board of Netoil.

"Netoil proposes to also take over entire debt of NOCL," it said without giving details.
If the talks are successful, Singapore-based firm will be a saviour for the debt-ridden NOCL.

The strategic sale was prompted by a consortium of lenders seeking a special dispensation from the Reserve Bank of India (RBI).
"The banks have sought RBIs dispensation in view of the assets likely to be classified by RBI as non-performing," it said.
Lenders want their exposure to NOCL be treated as standard rather than a non-performing asset (NPA) on the grounds of a change in management. Bankers believe this will help speed up the deal.

NOCL's 12 million tonnes a year refinery was to be commissioned in March 2012 but has been delayed due to fund shortage.
NOCL was to set up the refinery in Tamil Nadu in two phases of 6 million tons per annum each.