Six private, PSU firms keen to buy Haldia Petrochem stake

At least six major private and state-owned companies are vying for the West Bengal government's 31-per cent stake in the beleaguered Haldia Petrochemicals Ltd, despite its mounting losses and a protracted legal battle.

Among those who have submitted expressions of interest (EoI) are Reliance Industries Ltd, state-owned Oil & Natural Gas Corp Ltd, IndianOil Corp, and GAIL India; Cairn India  Ltd, and the Essar Group.

Monday was the final day for submitting EoIs.

Haldia chairman and West Bengal industries minister Partha Chatterjee confirmed that the company had received EoIs from the six participants.

Mangalore Refinery and Petrochemicals Ltd (MRPL), a subsidiary of ONGC, was reportedly also keen to participate in the bid but stepped back later.

The state government controls its stake in HPL through West Bengal Industrial Development Corp (WBIDC).

According to a WBIDC official, a management team of IndianOil and ONGC had visited the HPL plant in Haldia recently as the former was more than keen to acquire the stake.

The Purnendu Chatterjee-led The Chatterjee Group (TCG), another key promoter in HPL, has the first right of refusal. TCG has been at loggerheads with the West Bengal government over management control in the company. Besides, the firm reportedly made a loss of Rs900 crore in 2012-13, and around Rs850 crore the year before.

The company has often been at the receiving end of the shareholders' dispute, and this was one of the reasons why HPL was not able to secure any fresh working capital loan from its lenders.

However, a meeting of lenders is slated to happen on 14 June and they are expected to release Rs400 crore to the ailing company as WBIDC has given in-principle approval to extend a term loan of Rs100 crore.

The state government initially floated an EoI for 67.5 crore equity shares, which constitute 39.99 per cent of the paid-up equity of the company. Consultancy major Deloitte came out with an invitation for EoIs on 10 May. However, two TCG firms argued that out of 67.5 crore shares, 15.5 crore shares are disputed and their transfer may have legal ramifications.

The Calcutta high court then advised the state government to go ahead with the remaining stake, which is around 31-per cent.

HPL co-promoter TCG holds 69 crore equity shares, which is 41 per cent of the paid-up equity of the company.