Cabinet gives in-principle nod to 51% HPCL stake sale to ONGC
Post ONGC buying government stake, HPCL will become subsidiary of Indias largest oil producer but its board will continue to be in place.
Union Cabinet on Wednesday gave in-principle nod for sale of government's stake in Hindustan Petroleum Corporation Limited (HPCL) to Oil & Natural Gas Corporation Ltd (ONGC).
As per a PTI alert, ONGC will not have to make open offer post buying 51.11% government stake in HPCL.
Post ONGC buying government stake, HPCL will become subsidiary of India's largest oil producer but its board will continue to be in place.
Quoting Oil Minister Dharmendra Pradhan, a Reuters report said, "ONGC has forwarded a proposal to acquire HPCL. Process for in-principle approval for this proposal has been initiated."
Moreover, an official close to the deal said that HPCL stake sale to ONGC is expected to complete in one year.
Speaking with CNBC TV18, ONGC Chairman Dinesh K Sarraf, said "HPCL to become unit after stake purchase. HPCL stake value to be decided by buyer and seller."
He also said that ONGC has already prepared plan for funding HPCL stake buy. Clarifying the deal, Saraff added that ONGC is "not talking" about merging HPCL as the brand of the refining and marketing company will continue to remain in place.
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