Financial Daily from THE HINDU group of publications
Thursday, Feb 16, 2006
Financial Daily from THE HINDU group of publications Thursday, Feb 16, 2006 |
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Corporate
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Mergers & Acquisitions Industry & Economy - PSU Stake sale in ONGC, GAIL: JM Morgan, Citi Financials IOC's merchant bankers Our Bureau
New Delhi , Feb. 15 INDIAN Oil Corporation (IndianOil) has nominated JM Morgan and Citi Financials as merchant bankers for sale of part of its shareholding in Oil and Natural Gas Corporation and GAIL (India) Ltd. Both the merchant bankers would advise the company on the transactions in ONGC and GAIL, a senior IndianOil official said. The company proposes to offload the stakes in the current financial year in tranches. IndianOil had invited bids to appoint merchant bankers to handle the sales through financial institution. Almost 13 merchant bankers had made presentation of which four were shortlisted. For the sale of up to 20 per cent of its stake in ONGC, Indian Oil has invited bids from Kotak Mahindra, Citi Financials and JM Morgan. In addition to these three merchant bankers, the SBI Caps-CLSA combine was also asked to submit price bids for up to 50 per cent sale of its stake in GAIL. IndianOil holds 13.7 crore-equity shares or 9.61 per cent stake in ONGC and 4.08 crore-equity shares or 4.83 per cent in GAIL. It had got its board's approval in December last year for sale of up to 20 per cent of its stake in ONGC and up to 50 per cent in GAIL this fiscal. This, however, was subject to approval of the competent authorities — the Ministry of Petroleum and Natural Gas. The Government had in November last year given in-principle nod to oil PSUs ONGC, IOC and GAIL to offload the cross-holdings in each other. This decision to offload was taken as oil PSUs felt that investments were locked in small holdings without serving any business or strategic purpose.
More Stories on : Mergers & Acquisitions | PSU | Consulting | Petroleum | Oil & Natural Gas Corporation Ltd | GAIL (India) Ltd
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