ONGC, GIP and Tripura government eye IL&FS' stake in OTPC, says report

Tripura government along with state-owned Oil and Natural Gas Corporation (ONGC) and Global Infrastructure Partners (GIP) are eyeing to buy about 26 percent stake in the Infrastructure Leasing & Financial Services Ltd’s (IL&FS) Rs 3,804 crore ONGC Tripura Power Co. Ltd (OTPC), Mint reported.

The shareholders have shown interest in acquiring the stake in OTPC, which runs the Palatana power project in the northeastern state, by leveraging the shareholder pact, according to which IL&FS should offload its shares to the stakeholders under duress at a 20 percent discount on the face value of Rs 10 per share, the report said.

ONGC has a 50 percent stake in OTPC, IL&FS has 26 percent, GIP 23.5 percent and the Tripura government has 0.5 percent, the report said, adding that the debt-laden NBFC's 26 percent stake will be divided proportionally among the shareholders.

“According to the shareholder agreement, the existing stakeholders have the first right of refusal. ONGC, Global Infrastructure Partners and Tripura government have written to IL&FS stating that its stake be acquired by them. The issue was mutually discussed among the existing stakeholders and the view was communicated to the IL&FS," Mint quoted a source aware of the development as saying.