Hindustan Petroleum Corp Ltd on Thursday said it has acquired 17.28 percent stake in Petronet MHB Ltd, a firm that owns a petroleum product pipeline at Mangalore, for Rs 185.38 crore.
Hindustan Petroleum Corp Ltd (HPCL) on Thursday said it has acquired 17.28 percent stake in Petronet MHB Ltd, a firm that owns a petroleum product pipeline at Mangalore, for Rs 185.38 crore.
HPCL and its parent, Oil and Natural Gas Corp (ONGC), presently hold 32.72 percent stake each in the company that transports petroleum products.
In a regulatory filing, HPCL said Petronet MHB Ltd had a net worth of Rs 796.30 crore as of March 31, 2019.
"The acquisition will open up possible opportunities for synergy, better cost economics and revenue maximization," HPCL said, adding that no governmental or regulatory approvals are required for the acquisition.
The acquisition is expected to be completed by March 31.
"The company has entered into a share purchase agreement dated February 27, 2020, with consortium of 8 nationalised banks, who hold equity shares in Petronet MHB Ltd, for acquisition of 9.48 crore equity shares aggregating to 17.28 percent of the paid-up equity share capital at a price of Rs 19.55 per share," HPCL said.
"Post-acquisition the shareholding of HPCL in Petronet MHB will be about 49.996 percent," it added.
Petronet MHB Ltd was incorporated on July 31, 1998, on a common carrier principle to provide petroleum product transportation facility from Mangalore refinery to the oil marketing company terminals at Hassan and Devangonthi (Bangalore). ONGC owns 51.11 percent stake in HPCL.
Petronet MHB had revenue from operation of Rs 128.33 crore in 2016-17, which rose to Rs 130.89 crore in 2017-18 and Rs 158.44 crore in the following year.
In a separate filing, Bank of Baroda said it sold its 4.90 percent stake in Petronet MHB for Rs 52.56 crore.