May 16, 2011 [The Times of India] - Private equity giant TA Associates, New Silk Route Partners and IDFC have evinced interest to invest Rs 400 crore for 14% stake in Indian Oiltanking, a provider of storage and terminalling services to the oil and gas industry, said two separate sources directly familiar with the development.
Indian Oiltanking (IOT) Infrastructure and Energy Services is an equal joint venture between Indian Oil Corporation and Germany’s Oiltanking GmBH.
Investment bankers have approached private equity firms after IOT expressed interest to explore alternatives to a proposed Initial Public Offering (IPO), which has been delayed due to choppy market conditions. IOT had proposed to raise Rs 800 crore through the offer, but would now explore interests from the PE firms. Indian Oiltanking has not dropped the public offer plan completely, sources added. This will be one of the rare instances of private equity play in largely state-owned enterprise. IOT’s entrepreneurial management and its established market position are strong positives for the private equity funds.
