Soon to change ownership, state-owned Bharat Petroleum Corporation Ltd (BPCL) is considering buying out Oman Oil Company in the Bina refinery project in Madhya Pradesh. BPCL board is also considering merging Bharat Gas Resources Ltd. (BGRL) with itself, the company said in a filing to the stock exchanges.
The company board will “consider a proposal for according ‘in-principle’ approval” for “acquisition of 36.62 per cent of equity shares in BORL from OQ S.A.O.C. (formerly known as Oman Oil Company S.A.O.C.),” it said.
This would amount to the acquisition of 88.8 crore equity shares from OQ. The board would also consider a proposal to approach the Madhya Pradesh government for acquiring 2.69 crore warrants held by it in BORL. The meeting would also consider “merger of Bharat Gas Resources Ltd (a wholly-owned subsidiary of BPCL) with BPCL,” the filing said.
BPCL incorporated BGRL for handling the natural gas business in June 2018. It won the license to retail CNG to automobiles and piped natural gas to households and industries in 13 Geographical Areas under round 9 and round 10 of City Gas Distribution (CGD).
BGRL is also planning to put up an LNG import terminal along the East Coast of India. Oman Oil had recently expressed interest to divest its stake in BORL. BORL became a subsidiary of BPCL in March this year when it converted warrants into shares taking the state-owned refiner’s stake in the erstwhile equal joint venture to 63.38 per cent.
In addition to the equity investment in BORL, BPCL had subscribed to zero per cent compulsorily convertible debentures of Rs 1,000 crore and share warrants of Rs 1,585.68 crores which on conversion would turn BORL into a subsidiary of BPCL.