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Thursday, May 06, 2004

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Haldia Petro-Gail equity pact: Sticky issues remain

Our Bureau

Kolkata , May 5

THE nitty-gritty of the shareholders' agreement between Haldia Petrochemicals Ltd (HPL) and Gail India Ltd is now being worked out.

State Government officials said that while there was "no dispute on the financial side", some operational and management issues would have to be resolved. They declined to give more details.

As per the recently concluded debt recast process of HPL, Gail is slated bring in equity of Rs 332 crore in two tranches to become the fourth equity partner.

The Tatas have agreed to retain only a token stake, shedding at least 10 per cent of their current holding, which the State Government will buy up, although no price has been fixed as yet, sources said.

Even as talks are on between HPL and Gail, indications are that HPL's IPO, which was earlier planned to be launched around May-June 2004, is likely to be delayed, they added.

State Government officials confirmed this saying that several tie-ups including the one with the merchant banker was yet to be finalised.

However, they reiterated that the August 12, 2004 deadline set by the CDR monitoring committee for the issue would be met.

The IPO is part of the fresh equity infusion of Rs 600 crore, as stipulated by the lenders' consortium as part of the CDR.

HPL had planned the book-building route for the IPO. Post-restructuring, HPL's paid-up capital is slated to increase to Rs 2,000 crore from Rs 1,153 crore now.

More Stories on : Restructuring | Petrochemicals | Petroleum

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