The Hindu Business Line : IOC hopes to complete IBP merger by Dec

Looking ahead
Process of post-merger synchronisation of operations has already begun with sharing of infrastructure logistics.
Though the search for exploration, production assets will continue, IndianOil's priority now is expansion in the downstream petrochemicals sector.
IOC is eyeing for control over HPL, not interested in sharing interest with ay other party.

MR S. BEHURIA (right), Chairman, IOC, and Mr N.G. Kannan, Managing Director of IBP Co, at the company's AGM in Kolkata on Thursday. - A. Roy Chowdhury

Kolkata , June 29

IndianOil is expecting the merger of IBP with itself to be completed latest by December.

Talking to newspersons following the shareholders meeting of IBP Ltd, organised here today, Chairman of both the companies, Mr Sarthak Behuria, said the company would soon approach the Department of Company Affairs to convey the response of IBP shareholders towards the merger proposal.

IBP shares closed 1.25 per cent higher at Rs 392.50 on the NSE on Thursday.

Synchronisation

On post-merger synchronisation of operations, he said the process has already begun through sharing of infrastructure logistics.

Mr Behuria admitted that oil marketing being non-remunerative in the existing scenario the merger would add pressure on IOC balance sheet.

"However, we can reduce the operational and handling costs through synchronisation of operations," he said.

Though he did not give any detailed outline of the HR initiatives to be taken up post-merger, Mr Behuria hinted that the merger would necessitate "rationalisation" of operations in a number of areas.

The Government shareholding in IOC will come down marginally from 82.03 per cent to 80.35 per cent. The paid-up equity capital would increase from Rs 1,168 crore to Rs 1,192 crore.

Future focus

On IOC's future growth perspectives, he said that while the search for exploration and production assets continues, the company's priority is expansion in the downstream petrochemicals sector.

Haldia Petro

Mr Behuria made it clear that IOC is eyeing for control over HPL. "We are not interested in sharing interests with any other party," he said.

"We are still waiting for the verdict of the CLB over acquisition of 7.5 per cent strategic stake from the West Bengal Government," Mr Behuria said, adding that the company was keen to acquire management control in the joint sector company.

More Stories on : Mergers & Acquisitions | Petroleum | Petrochemicals

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page