<p class="bodytext">India's largest oil and gas producer ONGC will buy the government's entire 51.11% stake in the state-owned Hindustan Petroleum Corporation (HPCL) for Rs 36,915 crore in a deal that will make the Centre surpass its Budgeted divestment target of Rs 72,500 crore for the first time ever.</p>.<p class="bodytext">The all-cash deal is expected to be concluded by this month-end.</p>.<p class="bodytext">"Through this acquisition, ONGC will become India's first vertically integrated oil major, having presence across the entire value-chain. The integrated entity will have advantage of possessing enhanced capacity to bear higher risks, take higher investment decisions and neutralising the impact of volatility of global crude prices," the Finance Ministry said in a statement.</p>.<p class="bodytext">ONGC will buy HPCL's share at Rs 473.97 per share, which is 14% premium to Friday's close, ONGC said in its exchange filing. ONGC said it has been exempt from making an open offer to HPCL's minority shareholders.</p>.<p class="CrossHead">Exempt from public offer</p>.<p class="bodytext">"The deal is exempt from a public offer, as both the entities are related parties, but the transaction involving two listed entities have been carried out on an arms-length basis," ONGC said.</p>.<p class="bodytext">"The acquisition has been undertaken in furtherance of the government's objective to combine the various central public sector enterprises to give them capacity to bear higher risks, avail of economies of scale, take higher investment decisions and create more value for the stakeholders and create an 'oil major' which will be able to match the performance of international and domestic private sector oil and gas companies," ONGC said in a statement.</p>.<p class="bodytext">"The Union Cabinet, in its meeting held on July 19 last year, gave 'in-principle' approval to the said proposal and decided to set up an alternative mechanism under the finance minister to decide on the price, timing and the terms and conditions of the strategic sale. The alternative mechanism under the chairmanship of the finance minister in its meeting today approved the price bid of ONGC and the terms and conditions of the sale," the Finance Ministry statement said.</p>
<p class="bodytext">India's largest oil and gas producer ONGC will buy the government's entire 51.11% stake in the state-owned Hindustan Petroleum Corporation (HPCL) for Rs 36,915 crore in a deal that will make the Centre surpass its Budgeted divestment target of Rs 72,500 crore for the first time ever.</p>.<p class="bodytext">The all-cash deal is expected to be concluded by this month-end.</p>.<p class="bodytext">"Through this acquisition, ONGC will become India's first vertically integrated oil major, having presence across the entire value-chain. The integrated entity will have advantage of possessing enhanced capacity to bear higher risks, take higher investment decisions and neutralising the impact of volatility of global crude prices," the Finance Ministry said in a statement.</p>.<p class="bodytext">ONGC will buy HPCL's share at Rs 473.97 per share, which is 14% premium to Friday's close, ONGC said in its exchange filing. ONGC said it has been exempt from making an open offer to HPCL's minority shareholders.</p>.<p class="CrossHead">Exempt from public offer</p>.<p class="bodytext">"The deal is exempt from a public offer, as both the entities are related parties, but the transaction involving two listed entities have been carried out on an arms-length basis," ONGC said.</p>.<p class="bodytext">"The acquisition has been undertaken in furtherance of the government's objective to combine the various central public sector enterprises to give them capacity to bear higher risks, avail of economies of scale, take higher investment decisions and create more value for the stakeholders and create an 'oil major' which will be able to match the performance of international and domestic private sector oil and gas companies," ONGC said in a statement.</p>.<p class="bodytext">"The Union Cabinet, in its meeting held on July 19 last year, gave 'in-principle' approval to the said proposal and decided to set up an alternative mechanism under the finance minister to decide on the price, timing and the terms and conditions of the strategic sale. The alternative mechanism under the chairmanship of the finance minister in its meeting today approved the price bid of ONGC and the terms and conditions of the sale," the Finance Ministry statement said.</p>
