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NRI's TCG picks up majority stake in MCC's Haldia plant
30
Jul '16
The Chatterjee Group (TCG) owned by NRI entrepreneur Purnendu Chatterjee has picked up a majority stake in Japanese major Mitsubishi Chemical Corporation's (MCC) Indian unit in West Bengal for around Rs 322 crore ($48 million).

TCG will buy 5.8 billion shares (90 per cent stake) of MCC PTA India Corporation (MCPI) with Mitsubishi retaining 600 million shares in the Haldia-based unit, according to the share purchase agreement on the Tokyo-based company's website.

“The agreement includes two processes—conversion of the MCC loans to MCPI into common shares, and increase MCPI capital share with MCC as underwriter by the share transfer date, which is scheduled for the end of October this year. This will increase the percentage of the MCPI common shares held by MCC to a maximum of 99.4 per cent,” the company said in a statement.

The Japanese petrochemicals maker maintained that after completion of the above capital increase, MCC will transfer all the shares except for a shareholding ratio of 9 per cent to Chatterjee on the share transfer date.

As a result, MCPI will become a non-consolidated affiliate of MCC.

West Bengal Industrial Development Corporation (WBIDC) will also hold a small stake (at present 5 per cent).

The Indian unit of MCC currently has an installed capacity of 1.27 million tonnes with a turnover of around Rs 6,000 crore. It has a workforce of around 1,100 people.

Industry circles view it as a strategic decision by the Tokyo-based company to exit the commodity chemical business as the firm has also offloaded its PTA business in China, selling the plant to an oil refiner in Ningbo.

However, it has decided to retain the Thailand facility that supplies to group firms and another unit in South Korea.

Founded in 1989 by Chatterjee, TCG is a US-based private equity firm, with investments and operations spanning several continents and industries. It prefers to invest in petrochemicals, pharmaceuticals, biotech, financial services, real estate and technology sectors in the US, Europe and South Asia.

TCG, according to Mitsubishi Chemical's statement, has operating assets worth $900 million across the world. Early this year, TCG emerged as the single-largest shareholder in Haldia Petrochemicals Ltd by paying Rs 653 crore and buying out 26 crore shares from WBIDC. (SH)

Fibre2Fashion News Desk – India

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