The Hindu Business Line : TCG not to sell stake in HPL to Bengal Govt

Contentious issues
TCG officials unwilling to comment as matter is sub judice.
WBIDC suggested that either TCG would have to buy out the State Government stake at a price higher than Rs 28.80 per share or it would buy back the share held by TCG.

Kolkata , April 3

Dr Purnendu Chatterjee promoted The Chatterjee Group (TCG), one of the principal promoters of Haldia Petrochemicals Ltd (HPL), has categorically turned down the West Bengal Government's proposal to buy out its stake.

Justifying its stand, sources in TCG said the company has succeeded in setting up HPL from the scratch and subsequently turning it around after a financial collapse.

"So, we are not sellers. No matter what happens we are not going to sell our stake in HPL. We are not accepting any formula where we would have to sell out our stake," sources said.

When Business Line contacted senior TCG officials, they were unwilling to comment because the matter was sub-judice.

The TCG stance is significant because in the last Company Law Board (CLB) hearing on March 31, the West Bengal Industrial Development Corporation (WBIDC) lawyers suggested that the State Government was willing to buy out the TCG stake.

Based on a compromise formula suggested by Mr S. Balasubramaniam, CLB Chairman, the WBIDC suggested that either TCG would have to buy out the State Government stake at a price higher than Rs 28.80 per share or it would buy back the share held by TCG.

The WBIDC announcement was considered as a strategic move as it clearly signified that the State Government did not want to continue its partnership with TCG in HPL.

TCG sources said that their lawyers are likely to receive the legal copies of the last CLB hearing soon.

Thereafter, they would go through it and take a final decision.

TCG lawyers have already sought time till April 12 to respond to the WBIDC offer.

Pricing contention

Though pricing of the shares remains a contentious issue, TCG sources said that they want to buyout the State Government share. "Of course we are willing to buy out their stake," TCG sources said.

The next CLB hearing is scheduled for July. The HPL imbroglio started because TCG (which currently holds 48.94 per cent) moved CLB against WBIDC's decision to allot 7.5 per cent HPL stake to Indian Oil for Rs 150 crore.