BPCL is withstanding a segmentation procedure, where three manifestations of interest are reportedly collected.
New Delhi (Natural Energy News): State-run Bharat Petroleum Corporation (BPCL) said on Tuesday after its planned split that its board would consider a proposal to increase its stake in India Oman Refineries. The plan to merge Bharat Gas Resources with the company will also be considered in the meeting to be held on Thursday.
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BPCL informed the exchanges on Tuesday that its board would consider the acquisition of 36.62 per cent equity shares in India Oman Refinery (BORL) on Thursday. BPCL will acquire these shares from its Oman partner in BORL. In the committee, a suggestion to merge Bharat Gas Resources, a wholly owned associate of BPCL, will also be allowed. Bharat Gas Resources was incorporated in June 2018 to take over its natural gas business.
BPCL is withstanding a segmentation process, where three manifestations of investment are reportedly collected. Transaction advisors began the process of evaluating these bids on Tuesday.
BORL was incorporated in 1994 with balanced equity participation of BPCL and Oman Oil Company. The corporation became an associate of Bharat Petroleum Corporation Limited in April this year. BORL has a Bina Refinery located in Madhya Pradesh.
Currently, BPCL has a 63.38 percent stake in BCLL. The refiner intends to acquire 36.62 per cent from OQ S.A.0.C, a national petroleum investment company in Oman (formerly known as Oman Oil Company S.A.O.C). In addition, BPCL said, its board would also consider a proposal to approach the Madhya Pradesh government to acquire its 269,00,000 warrants at BORL.
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In March, BPCL expanded its investment in BORL in shares worth Rs 650 crore warrants, boosting its investment from 50 percent to 63.38 percent. In addition, Bharat Petroleum Corporation Limited had provided a loan of Rs 1,254.10 crore to BORL and agreed to its share authorization.
During FY 2015 crude oil consumption of BORL was 7913 thousand metric tons (TMT) with an average 95 percent capacity at Bina Refinery.
BORL noted earnings from operations of Rs 41,940.96 crore in FY20 as compared to Rs. 31,597 crore were recorded in the last economic year. For FY 2015, BORL reported a net loss of Rs 803.50 crore due to circumstances arising out of the Covid-19 outbreak against a profit of Rs 106.71 crore in the previous year.
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