HPCL to acquire MRPL in share-swap deal
Posted on 31st October 2017 |
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| Hindustan Petroleum Corp Ltd (HPCL) is likely to acquire Mangalore Refinery and Petrochemicals (MRPL) in a share-swap deal to become India’s second-largest oil refiner. The merger is likely to take place after ONGC, country’s biggest oil and gas explorer, completes acquisition of HPCL in an all-cash deal by December or January, officials in know of the development said. MRPL is a subsidiary of Oil and Natural Gas Corp (ONGC). At present, ONGC owns 71.63 per cent stake in MRPL while HPCL has 16.96 per cent. Once ONGC acquires 51.11 per cent stake in HPCL, India’s third-largest refiner, for about Rs 35,000 crore, it will have two refinery subsidiaries – HPCL and MRPL. “It does not make economic sense to have two separate subsidiaries for the same business. And so the logical move would be to integrate MRPL with HPCL,” an official said. The government is selling its entire 51.11 per cent holding in HPCL to ONGC for all-cash. HPCL will become a subsidiary of ONGC after the deal and retain independent board. “HPCL can acquire MRPL either by buying out ONGC’s shares, which at today’s trading price is worth close to Rs 16,800 crore. The other option is share-swap, wherein ONGC will get more shares in HPCL in lieu of it giving up its control in MRPL,” the official said. Share-swap, he said, is most likely option for the merger. “An exercise to arrive at valuations etc will begin shortly,” he said. Another official said it makes business sense for ONGC to bring all its refinery business under one umbrella. He said the board of ONGC and HPCL are yet to consider the proposal. HPCL will add 23.8 million tonnes of annual oil refining capacity to ONGC’s portfolio. This together with 15 million tonnes refinery of MRPL will create India’s second-biggest state-owned oil refiner after Indian Oil Corp (IOC). MRPL will be the third refinery of HPCL, which already has units at Mumbai and Visakhapatnam. The government’s selling its 51.11 per cent stake in HPCL to ONGC will achieve the disinvestment target for the current fiscal. The transaction will allow the government to monetise its HPCL ownership without losing ultimate control of the company. |
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Bharti Airtel defers Q2 results till Nov 14 over ambiguity on AGR verdict
Posted on 29th October 2019 |
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Bharti Airtel said on Tuesday it has postponed its second-quarter earnings report to mid-November, as the wireless operator sought clarity on the court ruling asking telecom firms to cough up overdue payments to the government.
Shares of the company, which was expected to release its quarterly numbers later in the day, dropped 3.3 per cent in early trade. |
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Rupee slips 8 paise vs US dollar in early trade amid drop in oil prices
Posted on 7th October 2019 |
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The rupee on Monday opened eight paise lower at 70.96 against the US dollar amid drop in crude oil prices and rise in Asian equities. The domestic unit on Friday closed almost flat at 70.88 against after the Reserve Bank of India (RBI) in a widely expected move cut key interest rates by 0.25 percentage point. On a weekly basis, the local unit slumped by 32 paise. |
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LIC pips private insurers in first-year premium growth during April-August
Posted on 13th September 2019 |
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In the first five months of the current financial year, first-year premiums of life insurance companies grew by 39.84% (year-on-year) at Rs 1.05 lakh crore as compared to Rs 75,588.35 crore in April-August of 2018-19. Life Insurance Corporation of India (LIC) continued to grow at a faster pace compared to private insurance players, shows the data from the Insurance Regulatory and Development Authority of India (Irdai). |
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Apollo Hospitals rules out further stake sale
Posted on 13th September 2019 |
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Apollo Hospitals Enterprise (AHEL) has ruled out further dilution of promoters’ stake in the company. The company also said its Rs 1,337-crore stake sale of Apollo Munich Health Insurance with mortgage major HDFC will be concluded by October. Following these stake sales, the promoters’ pledged position will come down from a high of 76% to 54% by October and eventually to 20% by November or December, company sources said here. |
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World trusts India on Kashmir, not us: Pakistan minister Ijaz Ahmed Shah
Posted on 13th September 2019 |
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In a major embarrassment for Pakistan and its Prime Minister Imran Khan, the country's Interior Minister Ijaz Ahmed Shah, a retired brigadier, said the international community didn't believe Pakistan's narrative on Kashmir; instead it is India whose version is trusted. |
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