IVRCL to sell 37.5% stake in IOT Utkal Energy Services
Analysts say IVRCL chairman Sudhir Reddy may receive roughly R400 crore from the sale as the terminal will be ready by October 2012.
IOT Infrastructure & Energy Services, a joint venture between IndianOil and Germany’s Oiltanking, owns 52.5% in IOT Utkal Energy Services, while Oiltanking, the world’s second largest terminalling company, holds the remaining 10%.
IOT Infrastructure & Energy Services, which has the first right of refusal for the IVRCL stake, is keen to pick up the stake and a deal is likely to be signed by July, people familiar with the development said.
“If there is a right party and the right price, we will look to exit the JV,” Balram Reddy, IVRCL’s chief financial officer, told FE in a telephonic interview. “IOT has the first right of refusal in this project.”
“IVRCL would first take an offer from a third party, and if IOT makes an offer above the third party’s offer, the stake would go to IOT,” he said, adding, “Our strength is in construction. Since the storage terminal in Paradip is nearing completion, we will exit and look to invest in new projects.” Shares of IVRCL were up 4.45% to close at R73.90 on the BSE on Thursday.
The terminal, which can store
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