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Cash-starved West Bengal plans to raise Rs 450 crore by offloading its 10% stake of 155 mln shares HPL

November 11/2011

(Plastemart) -- Cash-starved West Bengal plans to raise approximately Rs 450 crore by offloading its balance 10% stake of 155 mln shares in Haldia Petrochemicals (HPL) back to the company, as per Financial Express. This will leave majority shareholder Purnendu Chatterjee-led TCG with two options of either significant cash outgo to buy the 10% stake or letting the stake be snapped up by competitors. The sale will also violate a Supreme Court order, which had asked the state government to retain its residual stake.

The developments come in the backdrop of Rs 1,000 crore accumulated losses at HPL, which has charted a turnaround road map for the next three years. The company wants the government to hold on to its stake a bit longer as it will earn far more, once it is out of the red. West Bengal is also expediting transfer of an earlier block of 520 million shares (at Rs 28.80 each) as per the orders of the Company Law Board in 2007. The transfer of shares is in installments with the entire transaction divided into four tranches.

Perspectives of development of polymer markets, pricing issues and other important aspects will be discussed at The Polymers Summit-2011, which will be held in Moscow on November 30, 2011 at the Ritz Carlton Hotel. The Summit will be organized by MRC with the support of ICIS. The main idea of the Summit is to find a "the golden mean" between producers and converters. When producers receive exactly such margin of production, which helps them to invest in production expansion in order to substitute polymers imports, and the converters receive such price of feedstock that helps them to compete imported finished products. The Summit site gives an access to the live video of the Summit, speakers" presentations, as well as opportunities to ask questions or make appointments to any Summit partcipant.

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