InvestorQ : Why are ONGC and GAIL making a bid for JBF Petrochemicals?
Lavanya Subramanian made post

Why are ONGC and GAIL making a bid for JBF Petrochemicals?

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Anamika Sodhani answered.
2 weeks ago
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Two of India’s major oil and gas players, ONGC and GAIL, have initiated preliminary talks with lenders of JBF Petrochemicals to acquire the distressed company. However, both ONGC and GAIL are making these bids independently and not as a consortium. It may be recollected that JBF Petrochemicals is backed by the US based private equity firm KKR. There are already ready offers for JBF Petro from ACRE ARC and Citax.

While ACRE ARC made a cash bid of Rs.1,188 crore, Citax has offered Rs.1,411 crore. However, neither has given a firm bid and ACRE had asked for exclusivity, which JBF and KKR had refused. JBF had actually planned to set up a 1.25 MTPA plant to manufacture PTA or terephthalic acid plant, but the project got caught in a string of delayed approvals and other hassles which led to cost and time overruns.

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