So close, yet so far. Mukesh Ambani led Reliance Industries Ltd (RIL) and PSU major Indian Oil Corp (IOC) have emerged as the final bidders for state government's 40% stake Haldia Petrochemicals Ltd (HPL) stake sale.
But this was preceded by a lot of board room drama which is likely to lead the stake sale process into a tussle on a day it was supposed to announce the highest bidder.
After garnering expression of interest (EoI) from the major companies of the sector only two companies —Indian Oil Corp and Mukesh Ambani led Reliance Industries Ltd (RIL)— submitted the price bid on Monday.
But here's the catch that has caused the trouble.
The deadline to submit final price bid on Monday was 1 pm and only PSU major IOC had submitted its bid till that period. In a surprise move, the deadline was extended then till 3 pm and then RIL submitted its price bid for state's stake in HPL.
This move is being seen as one to facilitate Ambani. The group of ministers (GoM) on HPL had met on Monday before closing of deadline to submit price bid and went to meet the Bengal CM Mamata Banerjee and the decision to extend the deadline was taken after that.
According to person with direct knowledge of the matter who was present in the meeting said this has miffed IOC.
“IOC was the sole bidder till afternoon but government decided to extend it and only then RIL filed its bid,” the person said requesting anonymity.
A source in IOC too confirmed this as the official said, “We were first and only one to bid. We don't see a reason why it was extended specially for one company,” added the IOC official.
Ambani led RIL has been eying stake in HPL for a long time and the company chairman recently met CM Mamata Banerjee in Mumbai to discuss about HPL stake sale. On the other hand IOC is positioned best to gain management control in HPL as it already has close to 9% stake in the company. IOC also has a refinery very near top the HPL plant in Haldia.
HPL chairman and state industries minister Partha Chatterjee ruled any special comfort being given to RIL by adding that the final bids would be announced in another week.
“We are transparent and continue to remain so. We would open the bid in another six to seven days,” he added here on Monday after a marathon meeting.
However, after drawing big names such as Cairn India , ONGC, Essar Oil it was seen as a dampener as only two companies finally submitted the price bids. IOC, GAIL, Essar Oil, ONGC, RIL and Cairn India had submitted EoIs in June for participating the the stake sale.
Purnendu Chatterjee Led TCG (The Chatterjee Group) still has the right of first refusal over the state's stake and will get a month's time to match the highest bidder but today's developments have disrupted the stake sale process which is likely to lead into another tussle.
But this was preceded by a lot of board room drama which is likely to lead the stake sale process into a tussle on a day it was supposed to announce the highest bidder.
After garnering expression of interest (EoI) from the major companies of the sector only two companies —Indian Oil Corp and Mukesh Ambani led Reliance Industries Ltd (RIL)— submitted the price bid on Monday.
But here's the catch that has caused the trouble.
The deadline to submit final price bid on Monday was 1 pm and only PSU major IOC had submitted its bid till that period. In a surprise move, the deadline was extended then till 3 pm and then RIL submitted its price bid for state's stake in HPL.
This move is being seen as one to facilitate Ambani. The group of ministers (GoM) on HPL had met on Monday before closing of deadline to submit price bid and went to meet the Bengal CM Mamata Banerjee and the decision to extend the deadline was taken after that.
According to person with direct knowledge of the matter who was present in the meeting said this has miffed IOC.
“IOC was the sole bidder till afternoon but government decided to extend it and only then RIL filed its bid,” the person said requesting anonymity.
A source in IOC too confirmed this as the official said, “We were first and only one to bid. We don't see a reason why it was extended specially for one company,” added the IOC official.
Ambani led RIL has been eying stake in HPL for a long time and the company chairman recently met CM Mamata Banerjee in Mumbai to discuss about HPL stake sale. On the other hand IOC is positioned best to gain management control in HPL as it already has close to 9% stake in the company. IOC also has a refinery very near top the HPL plant in Haldia.
HPL chairman and state industries minister Partha Chatterjee ruled any special comfort being given to RIL by adding that the final bids would be announced in another week.
“We are transparent and continue to remain so. We would open the bid in another six to seven days,” he added here on Monday after a marathon meeting.
However, after drawing big names such as Cairn India , ONGC, Essar Oil it was seen as a dampener as only two companies finally submitted the price bids. IOC, GAIL, Essar Oil, ONGC, RIL and Cairn India had submitted EoIs in June for participating the the stake sale.
Purnendu Chatterjee Led TCG (The Chatterjee Group) still has the right of first refusal over the state's stake and will get a month's time to match the highest bidder but today's developments have disrupted the stake sale process which is likely to lead into another tussle.
Credits: business-standard
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