ONGC to acquire HPCL for Rs Rs 36,915 crore

     Written by : SMTV24x7 | Sat, Jan 20, 2018, 05:52 PM

ONGC to acquire HPCL for Rs Rs 36,915 crore

NewDelhi Jan 20: India's largest oil exploration company Oil and Natural Gas Corporation (ONGC) has confirmed that it would acquire 51.1% stake of government in HPCL for Rs 36,915 crore.

The Company in a stock exchange filing has said that "ONGC will pay the government Rs473.97 per share, a premium of over 10% of the 60-days weighted average of HPCL's scrip.shares will be acquired against cash and the transaction will be closed before month-end."

The govt has said that "The merger will create a vertically integrated public sector oil major having a presence across the entire value chain" and the cabinet in last year has approved the proposal of ONGC to buy shares of HPCL.

Sources added that " The acquisition helped government surpass its budgeted target for disinvestment of Rs 72,500 crore for the current fiscal. The target has been revised upwards at Rs 92,000 crore."