WB government accepts IOC's bid to buy 40% stake Haldia Petrochemicals

The Indian Oil Corporation’s bid to buy West Bengal (WB) Government’s 40% stake in Haldia Petrochemicals Ltd (HPL) finally received nod of the state government. IOC was the only bidder after other interested contenders such as Cairn India, GAIL, ONGC, Essar Oil and Reliance Industries Ltd did not participated in the bidding process. In the next step, The Chatterjee Group (TCG), the other principal promoter in HPL, will be given a chance to match IOC’s bid, according to its right-of-first-refusal (RoFR) agreement with the WB Government. If TCG decides to offer a counter-bid to IOC, then it will have one month to exercise this option. And if TCG declines to match IOC’s bid, then IOC, which already has 9% stake in HPL, will emerge has the largest stakeholder in the company.
 
HPL has been struggling financially with its net worth eroding from Rs 2,347 crore in 2009-10 to Rs 500 crore as on March 21, 2013. The HPL plant has been running at 60-65 per cent capacity due to acute fund shortage.
 
FOR COMPLETE REPORT READ: Bengal accepts IOC's bid for HPL stake buy