HPL denied share premium: TCG

Govt of West Bengal encashes Rs 150cr IOC cheque, Chatterjee moves Company Law Board

The Chatterjee Group (TCG) claimed today that it was fighting to protect the interests of Haldia Petrochemicals Ltd (HPL), which it has promoted and managed, by filing its petition before the Company Law Board.

"HPL should not lose out on its share premium, which would happen if the company's shares were issued at par to Indian Oil Corporation (IOC) at par or Rs 10 when it can fetch close to Rs 30 in the open market if established industry benchmarks were applied", top sources said.

The government of West Bengal today encashed the Rs 150 crore cheque issued by Indian Oil Corporation (IOC) for shares at par in Haldia Petrochemicals Ltd (HPL) from the corporate accounts branch of SBI.

The industry secretary of West Bengal, Sabyasachi Sen, when contacted, confirmed the development. Commenting on the move by The Chatterjee Group (TCG) in the Company Law Board, he said that the government was aware of the development but said that he could not say anything on this issue. "I would not say anything on that," he said.

However, government nominees on the HPL board spent much of the day at the HPL office trying to get an understanding of the developments before CLB in Delhi.

A media meeting by the company was cancelled, reportedly under pressure from the West Bengal government.

The source said TCG felt it had a sound case before CLB as the state government had practicised "material non-disclosure outlined in the CLB petition".

According to sources, TCG was not informed of the arrangement worked out by IOC and the government of West Bengal (GoWB) on November 10, 2004, under which the two agreed that HPL would be valued for sale of GoWB shares but TCG would be excluded from the process.

While TCG would get the first right of refusal, IOC could buy the shares if TCG found the valuation unacceptable.

If IOC found the valuation unacceptable, GoWB would refund the Rs 150 crore to IOC and pick up the shares.

Meanwhile, TCG group has pointed out that the West Bengal government had not signed on the share purchase agreement send by the TCG group.

"We have sent the agreement thrice after the two sides agreed on the price of Rs 28.80 for the governments stake, but the government not signed it," a top official of TCG group said.