The Hindu Business Line : ONGC board meet tomorrow to decide on MRPL stake

OIL and Natural Gas Corporation has convened a special board meeting on July 25 to discuss a proposal to take a controlling stake in Mangalore Refineries and Petrochemicals Ltd (MRPL). The acquisition price being considered is close to Rs 2 per share.

The proposal would involve buyout of AV Birla's 37.5 per cent stake and a financial restructuring of the huge debt base of the company. In the post-restructuring phase, which will involve conversion of a part of debt to equity, the stake of ONGC will rise to over 60 per cent. Hindustan Petroleum Corporation Ltd (HPCL), which has an equity stake of 37.5 per cent, will see its stake drop to around 15 per cent.

At present, HPCL and the AV Birla group are equal equity partners with the rest being held by the public and financial institutions.

Send this article to Friends by E-Mail

Stories in this Section
Maruti slashes prices of 800 cc models

Tata Engg's Indica to sport a higher price tag `soon'

Honda Motorcycle's Dio set for September debut

Laws complied with on ALBM, says Reliance

Hero Honda to seek shareholders' nod to hike FII limit

Sierra Optima is now arm of US co, changes name

New-look Qualis to hit the road in September

Essar clarifies on RS discussion

Wipro licence for Emuzed

Corporate malfeasance cowers markets