Sep 15: Haldia Petrochemicals Ltd has shot into the limelight after it acquired Lummux Technologies in a $2.668 billion deal. The acquisition was funded as a Leveraged Buyout with target company level (Lummus Technologies) debt of $ 1.5 billion and the balanced funded with a combination of equity and debt. HPL had acquired 57% equity stake for $690 million while the balance 43% was acquired by Rhone Capital.
8The problem is will incomes from Lummux be able to fund this debt
8Then again, HPL is planning some major expansions in India, including a Rs 600 crore takeover of Nagarjuna's Cuddalore industrial land, besides MOUs with Odisha and Andhra Pradesh for giant petrochemical complexes
8But how strong is the ground on which HPL stands to fulfill all of these plans?
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