ONGC acquires Indian government’s majority stake in HPCL
Published by Nicholas Woodroof,
Editor
Hydrocarbon Engineering,
Oil and Natural Gas Corp (ONGC) has acquired the Indian government’s 51.11% stake in Hindustan Petroleum Corp (HPCL) for Rs. 369 billion (US$5.78 billion), as recently reported by Reuters.
ONGC will pay a premium of about 14% on HPCL’s current market price for the majority stake, the company said in a statement to the stock exchange. It expects to complete the transaction by the end of January.
ONGC claims that the deal is part of the government’s objective to combine various public sector enterprises “to give them the capacity to bear higher risks” and create more value for shareholders.
It will also help ONGC to diversify its cash flow and reduce its vulnerability to changing global crude prices.
The proceeds from the HPCL stake sale will also help the federal government pay for welfare programmes.
Read the article online at: https://www.hydrocarbonengineering.com/refining/22012018/ongc-acquires-indian-governments-majority-stake-in-hpcl/
You might also like
The Hydrocarbon Engineering Podcast - Oil, gas, and the data centre boom
In this episode of the Hydrocarbon Engineering Podcast, David Wilson, CEO, Energy Exemplar, joins us to consider the role that oil and gas is currently playing in the booming data centre industry, and what the future holds.
Tune in to the Hydrocarbon Engineering Podcast on your favourite podcast app today.
