HPCL Shapoorji Energy Private Limited
Sell-side advisory during the pandemic with deal value of INR 3,970.65 million
- HSEPL, a 50:50 JV between HPCL and SP Ports Private Limited (a SP Group Company), is setting up a 5 MMTPA land based greenfield LNG storage and regasification terminal at Chhara Port, Gujarat
- On account of financial stress in SP Group caused by the Covid-19 pandemic, SP Ports decided to exit the JV by selling its stake to HPCL, in accordance with the Right of First Offer (ROFO) process under the JV agreement.
- HPCL acquired the 50% equity stake in HSEPL from SP Ports for a consideration of INR 3970.65 Mn. This represents a premium of 54.50% on the equity invested by SP Ports in the Project.
- The transaction was closed successfully, and definitive documents were signed in March 2021. Entire consideration was paid to SP Ports in March 2021.
- For HPCL, the acquisition represents an important step towards achieving the objective of strengthening its presence across the natural gas value chain.
- For SP Ports, the proceeds realized from the transaction would support the completion of Port project as Chhara.
- As part of ROFO process, SBICAP facilitated discussions with multiple potential investors.
- SBICAP was able to deliver the best value to all the stakeholders, viz, SP Ports, HPCL & HSEPL within stringent timelines.
- Despite disruption caused by the pandemic, SBICAP was able to keep all parties interested and consummated the transaction before the end of FY 20-21.
|Deal Value||INR 3,970.65 Mn|
|Documentation Date||March 30, 2021|