State-run Hindustan Petroleum Corporation Limited (HPCL) has entered into a share purchase agreement (SPA) for the acquisition of shares of HPCL Shapoorji Energy Private Limited, from S P Ports Private Limited. HPCL stated that the acquisition is expected to be completed by March 31, 2021.
This is acquisition does not require regulatory approval, the company said in its filing.
HPCL Shapoorji Energy Private Limited is an associate unlisted company of HPCL and a joint venture with S P Ports Private Limited.
HPCL Shapoorji Energy Private Limited (HSEPL) is in process of setting and developing of 5 MMTPA LNG storage and regasification terminal at Chhara, Gujarat. The unit is still under construction, thus, has made no revenues from the operation, stated the company in its filing.
The LNG Terminal Project of the HSEPL is expected to bring long-term value to the company being a growing segment of the energy basket of the nation, HPCL stated. The company has entered into a share purchase agreement dated March 27, 2021 for the acquisition of 50 per cent of the paid up equity share capital of HPCL- SEPL from S P Ports Private Limited. HPCL holds 50 per cent of the equity share capital of HSEPL as of December 31, 2020.
Incorporated in October 2013, HSEPL was set up to operate an LNG re-gasification terminal at the greenfield port at Chhara (Gujarat). EPC contracts have been awarded and construction is in progress at the project site.