Datta: Action time

Calcutta, Dec. 27: Andrew Yule, the diversified public sector company, has mandated SBI Caps to manage the divestment of Tide Water Oil.

SBI Caps, one of the leading merchant bankers of the country, has been given 20 weeks to wrap up the share sale process.

Yule holds a 26.22 per cent stake in the lubricant manufacturer Tide Water, which is listed on the Bombay Stock Exchange.

“We ideally want to complete the sale process by March. But SBI Caps has five months for it,” Kallol Datta, chairman and managing director of Yule, said.

The sale process of the other two Yule subsidiaries, Phoenix Yule and DPSC Ltd (formerly Dishergarh Power Supply Company Ltd), will, however, be completed by February, he added.

The money raised through the stake sale would be utilised to strengthen the balance sheet of the century-old Yule.

On the BSE, the Tide Water scrip closed at Rs 3,100 on Friday, valuing Yule’s direct holding in the company at Rs 70.8 crore. Yule may get another Rs 4 crore through its indirect stake in Tide Water.

Yule expects many local and some foreign majors from the oil and gas sector to bid for Tide Water, which has a consistent profit record.

SBI Caps will shortly seek expressions of interest (EoIs) from prospective bidders.

For power utility DPSC Ltd, the final price bid will be called by the middle of January. All the big names in power — NTPC, the Tatas, Reliance, the Jindals and CESC — are in the fray. The list also includes Coal India and Patton Ltd.

These companies have carried out due diligence of DPSC books. Deloitte & Touche Consulting India, Yule’s adviser for the sale process, is preparing the share purchase pact.