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Rediff.com  » Business » OVL to make offer for Imperial shares by Dec 9

OVL to make offer for Imperial shares by Dec 9

November 20, 2008 13:47 IST

ONGC Videsh Ltd, the overseas arm of state-run Oil and Natural Gas Corporation, will make an offer to acquire shares of the United Kingdom-listed Imperial Energy Corp Plc at 12.50 pounds a share by December 9.

OVL, last week, won Russian government approval for taking over Imperial, which has assets in Tomsk region of western Siberia.

"The formal offer document and acceptance forms are to be posted to Imperial shareholders by December 9," the UK-listed firm said. "All the pre-conditions to the share offer have now been satisfied."

It, however, did not give a date for completion of the deal.

Acquisition of Imperial will cost OVL about 1.4 billion pounds, or $2.1 billion at current exchange rates. Russia's Federal Anti-Monopoly Service (FAS) last week granted approval in respect of the ownership of Russian entities by entities controlled by a foreign government.

The government of India holds 74 per cent stake in ONGC. Prior to this, FAS cleared the acquisition under anti-monopoly regulations and stated that Imperial's assets were not strategic.

Since July, Imperial is producing 11,000 barrels of oil per day. Output will reach 25,000 bpd by fiscal-end with 18 wells coming on stream. Production would rise to 35,000 bpd (about 1.75 million tons) by 2009-end.

The company also plans to start commercialising gas from 2010.

Imperial board on August 26 had agreed to takeover bid by Jarpeno Ltd, a wholly owned subsidiary of OVL.

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