The Hindu Business Line : HPL promoters still to agree on Basell acquisition, stake sale to TCG

THE two principal promoters of Haldia Petrochemicals Ltd (HPL), the West Bengal Government and The Chatterjee Group (TCG), failed to agree on two important issues on Saturday.

First, the board could not decide whether HPL should participate in the TCG-led consortium's bid for the Amsterdam-based Basell NV. The meeting was also inconclusive on the issue of the proposed sale of the West Bengal Government's 37 per cent stake to TCG.

At an impromptu press conference after the meeting, Dr Purnendu Chatterjee of TCG tried to play down the two issues. Instead, he said that the board of directors had formally approved the proposal of the empowered group on corporate debt restructuring (CDR).

"The HPL board formally accepted the CDR proposal and the new terms and conditions of the new lenders. We are the first company to come out of the CDR net. Haldia Petrochemicals can now operate as any other respectable corporate house," he said.

The press conference was jointly addressed by Mr Tarun Das, Chairman of HPL, and Dr Sabyasachi Sen, West Bengal Industry Secretary, along with Dr Chatterjee. All three agreed that the promoters were trying to help HPL grow.

On the participation of HPL in the Basell acquisition process, Mr Das said that the board had received the proposal and is currently "reviewing it." However, no decision has been taken.

According to Dr Chatterjee, the total programme of the Basell acquisition is "not an easy process." He added that the new lenders had already approved HPL's participation in Basell.

Dr Sen spoke of the new initiatives planned for HPL. Capacity expansion to the extent of 30 per cent is being contemplated. "We are also considering some initiatives on the part of HPL in the downstream sector," he said.

On the issue of the stake transfer, all three said that talks were held and would continue till a conclusion is reached. They denied any "stumbling block" in this process, but Dr Chatterjee said, "All discussions that take place between the promoters cannot be shared with the media."

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