Bharat Petroleum Corporation Limited (BPCL), the second largest Indian Oil Marketing Company will acquire 36.6% stake from its partner OQ, the national oil company of Oman, in the Bharat Oman Refinery Ltd (BORL) for ₹24 billion, the company said today.
Since March 2020, BPCL has been holding 63.4% and OQ 36.6% equity in the Company. The Government of Madhya Pradesh has a minor stake in the Company through compulsorily convertible warrants.
BORL is located in Madhya Pradesh’s Bina and has a 7.8 MMTPA capacity. It was incorporated in 1994 as a public limited company with equal equity participation of Bharat Petroleum Corporation Limited and OQ (formerly known as OOC).
“With the acquisition of OQ’s entire stake in BORL, BPCL will establish control over BORL. This is expected to bring immense advantages to both the companies in terms of synergies and optimization of returns and will facilitate any future expansion or diversification in Bina,” said N. Vijayagopal, Director (Finance) of BPCL.
Last week, BPCL decided to merge its gas subsidiary called Bharat Gas Resources Ltd with itself, sold 5.8% of its 7.3% treasury shares for Rs55 billion; and approved the sale of its 61.7% stake in Numaligarh Refinery Limited for Rs99 billion, ahead of its divestment process.
The merger, BPCL said will help in streamlining of the corporate structure and consolidation of assets and liabilities, availing of easier financial support for the business; more efficient utilization of capital for enhanced development and growth of the consolidated business in one entity and improve management oversight and bring in operational efficiencies, among others.
Source: Mint