OIL, EIL, Assam govt. to buy 61.65%
Bharat Petroleum Corporation (BPCL) has decided to sell its entire 61.65% stake in Numaligarh Refinery (NRL) for nearly ₹9,876 crore to a consortium of Oil India (OIL) and Engineers India (EIL) and the Assam government.
In the event of the State government, which holds 12.35% stake in NRL and has the right of first offer, deciding against acquiring the shares being offloaded, the consortium of the two companies will be the buyer.
The share purchase agreement, with the buyers, will be entered into after BPCL shareholders approve the stake sale. The transaction is expected to be completed within a month of obtaining all requisite approvals, BPCL informed the stock exchange on Monday. The development assumes significance as the Centre had decided to delink NRL ahead of the proposed divestment of BPCL. The consolidated total income of NRL in 2019-20 was ₹14,244.29 crore or 4.29% of the consolidated total income of BPCL. The consolidated net worth of NRL as on March 31, 2020 was ₹5,292 crore, which is 14.18% of the consolidated net worth of BPCL.
Last month, OIL and EIL had announced the decision to bid as a consortium for the 61.65% stake. The exact percentage of the stake of OIL and ElL will depend on the extent of right of first offer (ROFO) to be exercised by the Assam government, they had said.
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