Andrew Yule may soon invite expression of interest (EoI) for divesting its 26.2% stake in Tide Water Oil — the company which owns the automobile lubricant Veedol.
“The divestment process will be initiated after receiving the valuation from appointed consultants. We will prefer a company which not only offers better value but also aligns with the company’s future plans,” a senior official in the ministry of heavy industries said.
The government has simultaneously initiated the process of appointing a consulting firm to undertake valuation exercise. The process is expected to be completed in two-three months.
Sources said major oil companies like RIL, Total and Chevron were interested in buying the stake. Chevron holds 22.1% stake in Tide Water through a subsidiary called Four Star Oil & Gas. The listed firm is promoted by Andrew Yule & Company and DPSC and they have 26.2% and 1.5% equity stakes respectively in the company.
A member of the Andrew Yule group of companies, Tide Water Oil produces lubricants for automobiles. It has five plants located in Howrah, Faridabad, Silvassa, Mumbai and Chennai. Andrew Yule had announced its plans to divest its 26% stake in Tide Water Oil as a part of its restructuring process. Tide Water Oil made a profit of Rs 23.2 crore after taxes in the financial year 2007-08.
Other stakeholders in Tide Water are LIC, United India Insurance, Madanlal, Maryada Barter, Santosh Industries and Arion Commercial. Balance stake in the company is held by the public.
Source: Economic Times