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BPCL to acquire Oman Oil's 36% stake in Bharat Oman Refineries

The board of BPCL will meet on December 17 to consider a proposal for acquiring 36.62 per cent stake in Bharat Oman Refineries (BORL) from Oman Oil Company S.A.O.C. (OQ)

twitter-logoBusinessToday.In | December 15, 2020 | Updated 16:46 IST
BPCL to acquire Oman Oil's 36% stake in Bharat Oman Refineries
BPCL board to consider merger of Bharat Gas Resources with itself

State-owned Bharat Petroleum Corp Ltd (BPCL) on Tuesday said that its board would consider the proposal to acquire 36.62 per cent stake in Bharat Oman Refineries (BORL) from Oman Oil Company S.A.O.C. (OQ). Currently, BPCL holds 63.38 per cent equity shares in BORL and OQ owns 36.62 per cent stake in the company.

Post acquisition, privatisation-bound BPCL shareholding in BORL will increase to 100 per cent.

BORL, a joint venture between BPCL and OQ, owns and operates Bina Refinery, located at Bina in the Sagar district of the state of Madhya Pradesh.

Also Read: BPCL bid evaluation committee to meet today; Vedanta, Apollo Global in fray

"The board of directors of the company at the ensuing meeting scheduled for 17 December 2020 would consider a proposal for according 'in principle' approval for acquisition of 36.62 per cent of equity shares in Bharat Oman Refineries Ltd (BORL) from OQ S.A.0.C.(formerly known as Oman Oil Company S.A.O.C). This would amount to acquisition of 888,613,336 equity shares from O.Q. S.A.0.C," BPCL said in a regulatory filing.

The BPCL's board would also consider a proposal to approach Government of Madhya Pradesh (GoMP) for acquiring 2.69 crore warrants held by the state government in BORL.

Also Read: Three bidders in fray for BPCL stake sale: Dharmendra Pradhan

Besides, the board would also consider merger of Bharat Gas Resources Limited, a wholly owned subsidiary of the company, with itself.

The government is selling its entire 52.98 per cent stake in BPCL and last date of putting in a preliminary expression of interest (EoI) for buying Centre's stake was 16 November. At the close of bidding, the government had said that it had received multiple EoIs, but did not reveal the identity of the bidders. As per report, mining-to-oil conglomerate Vedanta and private equity firms Apollo Global and I Squared Capital's arm Think Gas have bid to buy government's stake in BPCL.  

Meanwhile, shares of BPCL closed trade at Rs 398.70, down 1.74 per cent, against the previous closing price of Rs 405.75 on the Bombay Stock Exchange.

By Chitranjan Kumar

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