GCC firms eye stake in India's Mangalore petrochemicals complex

08 November 2013 15:24  [Source: ICIS news]

DUBAI (ICIS)--At least three firms from Gulf Cooperation Council (GCC) countries have shown interest in buying a 26% stake in India’s Mangalore Petrochemicals Limited (OMPL), bankers and industry officials said on Friday.

OMPL is an affiliate of India's biggest state-run oil explorer, Oil and Natural Gas Corporation Limited (ONGC).

Bankers said Kuwait National Petroleum Company, Qatar Petroleum and Emirates National Oil Company have expressed interest in the soon-to-be-commissioned petrochemicals complex in south western India.

ONGC plans to offer a 25% stake in Indian rupees (Rs) 60bn ($955m) OMPL to the public and another 26 % to a strategic partner.

Earlier this year, ONGC had mandated India’s ICICI Securities and Deloitte Touche Tohmatsu to bring investors for the aromatic complex designed to produce 900,000 tonnes/year of paraxylene and 300,000 tonnes/year of benzene.

Bankers said the GCC companies have shown strong response to the expression of interest floated to sell the stake in OMPL.

“India has always had a special significance for GCC countries that’s why three big names from the region are in competition with each other,” said a Dubai-based banker.

Bankers expect deal to be closed by the end of March 2014, when OMPL is also expected to start commercial operations.

($1 = Rs62.80)

By: Aamir Ashraf

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