ONGC trumps Sinopec with $2.6-billion bid for UK's Imperial Energy

26 August 2008

Mumbai: ONGC Videsh Ltd (OVL), the overseas arm of state-owned oil and gas explorer ONGC, has made a successful 1.4 billion ($2.6 billion) bid for Imperial Energy of the UK, beating rivals China Petroleum and Chemical Corp (Sinopec) and Korean National Oil Company.

OVL has offered 12.50 pounds a share for the Russia-focused Imperial Energy through its wholly owned subsidiary Jarpeno.

Imperial Energy also confirmed it was in the process of finalising a 1.4 billion pounds bid offer from ONGC Videsh.

''Imperial Energy confirms that is in the course of finalising the terms of a possible recommended pre-conditional cash offer with OVL of 1,250 pence per Imperial share," the company said in a statement.

Imperial's shares closed at 12.40 pence on Friday, lower than the OVL offer and the 12.90 pounds bid approach made when oil was at its peak of $147 a barrel.

Imperial shares were down 21 pence (39 cents), or 1.7 per cent, at 12.19 pounds ($22.41) in early London trade after market got news that OVL was finalising an offer to buy the company at 12.50 pounds ($22.97) per share.