In a move that apparently has the potential to fuel another round of conflict between the two promoters, PTI today quoted the West Bengal Commerce and Industry Ministry as saying that the State Government would sell its entire shareholding in the joint sector Haldia Petrochemicals Ltd (HPL) through open bidding.

“We will first go for an open bidding for the HPL shares held by the government. Then the highest bid price would be offered to TCG (The Chatterjee Group) for exercising their first right of refusal. If TCG refuses to buy the shares at that price, the shares will be offered to the highest bidder,” the Commerce and Industry Minister, Mr Partha Chatterjee, was quoted saying. TCG is the private co-promoter of the joint sector project

Sources, however, suggest that no such discussion took place between the promoters. “So far as we know there has not been any discussion between the two promoters on such auction issues so far,” a State government official told Business Line .

Incidentally, the agreement between the two promoters did not have a scope for any such auction. On the contrary, it allowed the State to sell its stake at a valuer-appointed price. The valuer should be selected by the State government out of a pool of three (valuers) to be recommended by the TCG. The private promoter enjoyed the first right of refusal on any stake sale proposal by the State.

Also, the PTI report did not clarify if the disputed 15.5 crore shares — which were due to be transferred to TCG at face value according to a separate agreement signed between the two parties in 2002 — are proposed included in the auction.

The HPL board, which met on December 12, was unanimous on the need for resolving the ownership dispute without any fresh litigation.

Related Topics