Hindustan Petroleum Corporation Ltd (HPCL) will purchase the share of its joint venture partner SP Ports Pvt. Ltd (SPPPL) in the 5 million metric tonnes per annum LNG re-gasification terminal.
As per a filing with the BSE on Sunday, HPCL said, it “has entered into a share purchase agreement dated March 27, 2021 ("Share Purchase Agreement") for the acquisition of 50% of the paid-up equity share capital of the Target Entity from SP Ports Private Limited."
SP Ports Pvt. Ltd is a unit of the Mumbai-based Shapoorji Pallonji Group, with the JV HPCL Shapoorji Energy Pvt. Ltd establishing the LNG re-gasification terminal. The endeavour with a 50:50 equity participation by HPCL and SPPPL is constructing the terminal at a cost of around Rs5,411 crore.
This transaction approaches in the backdrop of cash-strapped SP Group trying to raise funds. It also comes at the time of the Supreme Court on Friday handing Tata Sons Ltd a major victory in its four-year-long feud with the Mistry family.
“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," HPCLstated.
The LNG Terminal Project of the HSEPL is likely to bring long-term value to the firm being a growing sector of the energy basket of the nation, HPCLadded. The firm has entered into a share purchase agreement dated March 27, 2021, for the attainment of 50 per cent of the paid-up equity share capital of HPCL- SEPL from S P Ports Private Limited. HPCL holds 50 per cent of the equity share capital of HSEPL as of December 31, 2020.
Incorporated in October 2013, HSEPL was established to operate an LNG re-gasification terminal at the greenfield port at Chhara (Gujarat). EPC agreements have been awarded and construction is in progress at the project site.