IOC and IBP to merge
By Our Corporate Bureau | 30 Apr 2004
New
Delhi: Indian
Oil Corporation Ltd (IOC), the petroleum refining and
marketing major, plans to merge with itself its subsidiary,
IBP Ltd, and also set up a new exploration company with
an investment of $2 billion.
The IOC board met here on Wednesday and gave an "in-principle" approval to the two proposals, which will now be sent to the government for approval, the company chairman and managing director, M.S. Ramachandran, said.
As per the proposal approved by the board, IOC, which has a 51 per cent market share for petroleum products in the country, is to merge IBP with itself. IOC holds a 53.58 per cent equity stake in IBP following disinvestment and open offer of the oil retailing company in 2002.
The Ministry of Petroleum, when contacted, said IOC''s recommendations were yet to reach it and the government could react only after going through the proposals.
The two companies would be valued and Cabinet approval would be necessary as the government''s equity would be marginally diluted due to the share swap, the spokesman said.
