The Chatterjee Group (TCG) will resist Reliance Industries? entry into Haldia Petrochemicals (HPL), which the government, it alleges, is trying to ensure through the auction route.
Sources close to the development told FE that the fair way of offloading the government shares would be a public offer or an IPO, which was feasible after the ownership issue was sorted out and the company turned around.
Although state industry minister Partha Chatterjee said that the government would give the first right of refusal to TCG and, thereafter, put its holding to auction, TCG is trying to draw a strategy of preventing it from offering its share to Reliance.
TCG might even give up its claim of 520 million shares to ensure that the government doesn?t allow Reliance to enter HPL.
A TCG source said the government is looking for an exaggerated price of R28.80 per share.
The present value is R4 per share and government contenders like IOC and GAIL can, by no means, buy them.
Even if one pays a 100% premium to HPL shares, it would not cost more than R8 per share, they said.
Therefore, chances are that Reliance will be the only one in the fray. TCG alleges that Reliance is ready to pay even R30 per share to consolidate its position in the petrochemical business.
Earlier, Reliance had dismissed the reports that it was interested in HPL as mere speculation.
A director representing TCG said talks between the government and TCG to sort out ownership issues were not being held in a transparent manner.