TCG set to take over Haldia Petro

CLB tells West Bengal Industrial Development Corporation to exit petrochem outfit.

After a prolonged legal battle with the West Bengal government, The Chatterjee Group (TCG) on Wednesday came closer to taking over the management control of Haldia Petrochemicals (HPL) once again.

The Company Law Board (CLB) in its verdict has directed TCG to buy residual shares in HPL at Rs 28.80 a share as demanded by the West Bengal government during the CLB hearing, and also upheld the government's decision to issue HPL shares to Indian Oil Corporation.

The board has asked West Bengal Industrial Development Corporation (WBIDC) to transfer 155 million shares to the TCG at Rs 10 a share agreed upon earlier by the two promoters and another lot of 520 million shares at Rs 28.80 or a price determined by a independent valuer.

CLB has set a deadline of February 28 for TCG to purchase the 155 million shares and 45 days from the date, at which the valuer fixes the price, to buy the rest 520 million shares. If TCG fails to buy those shares within the time frame then WBIDC will buy the shares of TCG.

Following the stake transfer, TCG would hold 52 per cent (76 crore shares) stake in HPL, which has a paid up equity of Rs 1,460 crore (146 crore shares of Rs 10).

TCG group held its stake in HPL mainly through Chatterjee Petroleum (Mauritius) and India Trade (Mauritius). The 155 million shares was earlier issued to Chatterjee Petroleum India (CPIL) but was not confirmed.

While Purnendu Chatterjee refused to comment on the order as he had not seen the details, the state government is shocked by the development.

West Bengal industry minister Nirupam Sen told reporters at the sidelines of a seminar organised by Bengal National Chamber of Commerce that the order was not acceptable for the state and indicated that it would move the Supreme Court against the order.

"Whatever I heard about the order, I can tell you that it is unacceptable. We shall take legal opinion after receiving the copy of the order," he said.