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HPCL to acquire SP Group's stake in Gujarat LNG terminal JV

HPCL to acquire SP Group's stake in Gujarat LNG terminal JV

HPCL, in a regulatory filing on Sunday, March 28 further stated that the acquisition is likely to be concluded by March 31, 2021, and doesn't require regulatory approval

HPCL Shapoorji Energy Pvt Ltd (HSEPL) is an associate unlisted company of HPCL and a 50:50 JV with SP Ports Pvt. Ltd, which is a unit of Shapoorji Pallonji Group | Representational image HPCL Shapoorji Energy Pvt Ltd (HSEPL) is an associate unlisted company of HPCL and a 50:50 JV with SP Ports Pvt. Ltd, which is a unit of Shapoorji Pallonji Group | Representational image

State-run Hindustan Petroleum Corporation Ltd (HPCL) will buy out the share of its JV (joint venture) partner SP Ports Pvt. Ltd (SPPPL) in 5 million metric tonnes per annum (MMTPA) LNG re-gasification terminal at Chhara, Gujarat.

HPCL, in a regulatory filing on Sunday, March 28, announced that it has "has entered into a share purchase agreement (SPA) dated March 27, 2021 ("Share Purchase Agreement") for acquisition of 50% of the paid-up equity share capital of the Target Entity from SP Ports Private Limited."

The company further stated that the acquisition is likely to be concluded by March 31, 2021, and doesn't require regulatory approval.

Also Read: HPCL share rises 5% as firm to set up compressed biogas project in UP

HPCL Shapoorji Energy Pvt Ltd (HSEPL) is an associate unlisted company of HPCL and a 50:50 JV with SP Ports Pvt. Ltd, which is a unit of Shapoorji Pallonji Group. HSEPL is in the course of setting and developing a 5 MMTPA LNG re-gasification terminal at Chhara, Gujarat.

The project is still under construction, and thus, has not earned any revenue from the operations, HPCL stated in its filing with the BSE.

"Acquisition of shares of the Target Entity was done basis mutually agreed pre-money enterprise valuation. The said pre-money enterprise valuation has not been disclosed herein due to reasons of confidentiality," the company added.

Also Read: HPCL Q3 profit rises to Rs 2,354.6 cr; revenue down 3%

The deal comes in the backdrop of cash-strapped SP Group attempting to raise funds, as well as the Supreme Court's ruling on March 26 handing Tata Sons a big win in its four-year-long dispute with the Mistry family, its single largest stakeholder.

The top court refused to ascertain a fair value for the Mistry family's 18.3% holding in Tata Sons.

Also Read: Big win for Tata Sons: Supreme Court upholds Cyrus Mistry's removal

Published on: Mar 29, 2021, 1:38 PM IST
Posted by: Manali, Mar 29, 2021, 1:38 PM IST