MRPL to not give majority stake to JV partner

R Rajamani, MD, MRPL, said the company would not offer majority stake to a strategic buyer in its aromatic plant. The company has set a timeline of 4-6 months for induction of a strategic partner.

Earlier, there were reports that MRPL may offer 51% stake to strategic buyer in aromatic plant. The company was said to be in talks with Mitsui and Mitsubishi for the aromatic unit stake sale.

Excerpts from CNBC-TV18's exclusive interview with R Rajamani:

Q: Is it true that you are looking to sell the aromatic unit and how much do you plan to sell? Have you worked out a valuation?

A: Selling - there's no question of selling. MRPL and ONGC have an equity of 49% and others have 51%. So we are talking to some buyers for long-term agreements on our products and a possible equity participation. We are not selling our equity.

Q: Who are you talking to for that long-term participation and how much stake are you willing to give them in this JV?

A: It keeps varying, that we will not give a majority stake to them. There are many traders who deal with these products, they are talking to us. Mitsui, Mitsubishi, we have been talking to; a few others are also there for a long-term supply agreement and for a possible equity participation.

Q: By when do you hope to round up procedures on this stake sale?

A: It is going to take some time. About 4-6 months.

Q: Within the strategic placement, your holding and ONGC’s combined holding will not come below 49%?

A: No, it will not come below 49%.