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ONGC may buy HPCL's MRPL pie for Rs 550 cr
March 04, 2003 14:35 IST
Oil and Natural Gas Corporation is likely to buy 16.9 per cent stake of Hindustan Petroleum Corporation in loss-making Mangalore Refinery and Petrochemicals for close to Rs 550 crore.
The move follows installation of ONGC chief Subir Raha as chairman of MRPL after the state-owned firm bought Aditya Birla Group's 37.4 per cent stake for Rs 59.43 crore.
ONGC is also close to finalising a deal to acquire HPCL's 26 per cent stake in Mangalore-Hasan-Bangalore pipeline for Rs 43 crore, sources associated with the process said.
"HPCL has agreed to exit MRPL," they said.
Additional equity infusion and debt restructuring along with Birla's 37.4 per cent stake has given ONGC a majority holding of 51 per cent and the proposed acquisition of HPCL's shareholding would raise it further to 68 per cent.
ONGC had started negotiations with HPCL immediately after buying out Birlas in MRPL in August last year as part of strategy to emerge as an integrated oil company for which the exploration giant has also got license to market petrol and diesel, sources associated with the process said.
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