Financial Daily from THE HINDU group of publications
Tuesday, Apr 16, 2002
Financial Daily from THE HINDU group of publications Tuesday, Apr 16, 2002 |
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Mergers & Acquisitions Corporate - Mergers & Acquisitions Elf Gas acquires Mobil Peevees' LPG business Our Bureau
BANGALORE, April 15 ELF Gas India Ltd (EGIL), the fully owned subsidiary of the French petroleum major TotalFinaElf, has acquired the marketing and bottling activities of the Mobil Peevees Company Ltd's (MPCL) liquefied petroleum gas (LPG) business. Following the agreement, MPCL's LPG bottling plants and its subsidiary Supa Gas Ltd will come under the fold of EGIL. The acquisition effected under an agreement between EGIL and MPCL, however does not include MPCL's LPG handling terminal at Kozhikode, Kerala. When contacted for details, company sources said it is too early "for us to give the figures of consideration paid to the MPCL. We have paid only a part payment as the details of the due diligence was yet to be studied," adding the payments for the acquisition will be made from internal accruals. EGIL has also expanded its capital by Rs 20 crore to invest in its expansion programme, which consists of an enhanced storage capacity of 7,500 tonnes from 3,000 tonnes. EGIL has a capital base of Rs 57 crore. With the acquisition of MPCL's business and expansion of its own storage facility, EGIL hopes to increase its business volumes. EGIL, which has its port handling facility at Mangalore, is one of the largest LPG distributors in the southern region, the company sources said. EGIL will market MPCL's LPG cylinders under the latter's brand name for a year when the acquisition formalities are expected to be completed. EGIL will also provide the services to MPCL's customers along with its own branded LPG network. The company sources however declined to give the customer base of MPCL, which distributes commercial and domestic LPG connections.
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