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Shell may begin talks again for Nocil stake

Our Bureau

MUMBAI, June 12

SHELL Group is expected to start negotiations again with the Mafatlals and financial institutions for picking up 76 per cent stake in National Organic Chemical Industries Ltd (Nocil) shortly.

A team from Bassel Polyoelefins, a 50:50 joint venture between, Shell and BASF, is expected to come here by the month-end or early July for talks with Nocil promoters, a top company official has said.

Company sources say the price could be a major issue as the Nocil share is currently quoted around Rs 11, much below the earlier agreed price of Rs 29.

Shell Chemicals and Montell Polyolefins had signed an MoU in September 1988 with Mafatlals to acquire 49 per cent stake in the demerged Nocil at a price of Rs 29 per share. Subsequently, Montel merged with Elenac and Tragor to form a new company - Basell olyoelefins, which will now negotiate for Nocil stake.

Basell Polyolefins had six months ago indicated that it is prepared to pick up up to 76 per cent stake in the company.

Currently, the Mafatlals hold 42 per cent equity of the company, financial institutions 26 per cent and the balance by public.