The Hindu Business Line : OVL yet to get nod from Russia for Imperial takeover

ONGC Videsh Ltd (OVL) informed the London Stock Exchange (LSE) on Friday that it is yet to receive approvals from the Russian anti-monopoly authority for acquiring Imperial Energy Corporation Plc. The approval is required as the LSE-listed Imperial holds significant oil and gas assets in Russia.

The overseas investment arm of ONGC had applied for the approval in respect of ownership of Russian companies by entities controlled by a foreign Government. “Such approval has yet not been received and OVL is seeking clarification from the Federal Anti-Monopoly Services (FAS) regarding the status of this approval,” the company has said.

Besides, the filing made with FAS in respect of anti-monopoly regulations also remains under consideration. “Accordingly, neither of the pre-conditions to the offer have been satisfied,” OVL said.

Pre-conditions

OVL had on September 5 submitted applications seeking approvals required to satisfy the pre-conditions to the offer for Imperial Energy. Approvals were required from the Russian Governmental Commission in respect of the restriction on ownership of Russian entities by entities controlled by a foreign Government and on anti-monopoly regulations.

The Indian company has been informed by the FAS that the assets of Imperial Energy are not of strategic significance and accordingly the offer is not subject to preliminary approval of the Governmental Commission.

Sources told Business Line, “OVL had not sought approval under this criterion.”

Earlier reports from Moscow said that FAS had approved the application.

Imperial Energy’s board had approved the acquisition offer of OVL at 1,250 pence in cash for each share, totalling about $2.5 billion.

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