Calcutta, June 26: Chandra Kant Dhanuka's flagship company Dhunseri Petrochem Ltd has received the necessary permissions for its proposed transaction with Thailand's Indorama Group, which aims to create a polyethylene terephthalet (PET) resin behemoth.

The company has received shareholders' approval to carry out the scheme of arrangement at a court-convened meeting last week. It has also secured the approval of the Securities and Exchange Board of India and the Competition Commission of India.

"We are all set to complete the transaction with Indorama. My belief is that it would be done by August 15," Dhanuka, chairman of Dhunseri Petrochem, one of the largest Bengal-based company, said.

According to the broad contours of the deal, Indorama will pay Rs 209.38 per share to buy a 50 per cent stake in Dhunseri Pet Global Ltd (DPGL).

Dhunseri Petrochem's PET resin business, with its 450,000-tonne-per-annum plant in Haldia, will be transferred to this unlisted entity.

Indorama Ventures Global Services Ltd (IVGS) will subscribe to the newly issued shares of DPGL by pumping in Rs 418.76 crore. DPGL, in turn, will pay Rs 285 crore to parent Dhunseri Petrochem for the transfer of the assets, keeping Rs 133 crore for working capital and future expansion.

Dhunseri Petrochem will use Rs 110 crore to buy a 50 per cent stake in Indorama's north Indian venture Micro Polypet Pvt Ltd.

DGPL will be a board-managed company with Indorama and Dhunseri having three members each on the board. Dhanuka is tipped to be the chairman of this company.

C.K. Dhanuka's son Mrigank, who was until recently the managing director and vice-chairman of Dhunseri Petrochem, has shed the executive role to remain only as the vice-chairman. He is likely to migrate to Singapore and drive the group's food business.

The IVGS deal was carefully crafted to ensure that the Dhanukas do not lose control of the company and Dhunseri Petrochem's Egypt business is kept out of the ambit.

After the transaction, Dhunseri Petrochem will become a holding company of two large Indian manufacturers of PET resin, which is used to make plastic bottles, a plant in Egypt and a six-acre plot in Bantala IT special economic zone, besides around Rs 375 crore on its books and a small treasury operation.

Dhunseri Petrochem has built, through an wholly owned subsidiary, 400,000 square feet built-up space on the SEZ plot. Dhanuka said it would be ready for operation soon.