Cals Refineries Ltd. Acquires the Cenco and Atas Refineries from the Hardt Group

abarrelfullabarrelfull wrote on 17 Mar 2011 12:35
Tags: cals-refineries india refinery

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Cals Refineries Ltd. (BSE: 526652) (“Cals”) and the Hardt Group (“Hardt”) today announced a definitive agreement for Cals to acquire the Cenco and Atas refinery assets owned by affiliates of Hardt and currently located in the United States and the Turkish Republic of Northern Cyprus.

Under the terms of the transaction, which was unanimously approved by the Board of Directors of both Cals and Hardt, Cals will pay Hardt US $417 million in total consideration, with US$ 317 million paid in the form of Global Depository Receipts (“GDR”s) in Cals and the balance in cash. Hardt has also agreed to subscribe for certain equity shares of Cals on a preferential allotment basis, subject to Shareholder and customary approvals, in an amount of up to US $7 million (in Indian rupee equivalent) in one or more tranches and to nominate two Directors to the Board of Cals. The purchase of this equipment will increase the aggregate refining capacity of Cals’ planned refinery project in Haldia, West Bengal, India to 200,000 barrels per day.

Commenting on the occasion, Mr. D. Sundararajan, Managing Director of Cals Refineries Ltd. said, “Signing this agreement with Hardt Group gives a new fillip to our refinery project. With the help of Hardt Group we hope to achieve financial closure for the project at the earliest.”

“We strongly believe that investment opportunities like this have tremendous potential for creating value and generating returns for all parties involved,” said Dr. Alexander Schweickhardt, CEO and Founding Partner of Hardt Group. “India is a fast growing market and has a strong demand for energy. We are excited to be a part of this refinery project and look forward to long term relationships in India.”

The transaction is subject to the approval of Cals Shareholders and the satisfaction of customary closing conditions, including the receipt of various statutory approvals. Cals and Hardt expect the transaction to close in the second or third quarter of 2011.

About Cals Refineries Ltd

Cals Refineries Ltd. has plans to set up a total of 400,000 barrels per day (20 MMTPA) of oil refining capacity on India’s east coast in the State of West Bengal, in phases, thereby emerging as the third largest private sector oil refining and petrochemical company in India.

About the Hardt Group

Hardt Group is an investment company with a strong focus on the energy sector. Headquartered in Vienna, Austria, the firm also has offices in London and New York.

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