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Gulf Oil Corporation Ltd will seek shareholders’ nod to increase its borrowing limit to Rs 4,500 crore from the present Rs 2,000 crore and also create charge on its moveable properties.
The Hyderabad-based Hinduja Group company through a UK-based subsidiary in December concluded the purchase of the US-based Houghton International Inc, a global player in metal working fluids, for $1.045 billion. The company now proposes to seek members’ nod through a postal ballot for the enabling resolution to increase its borrowing power. This will enable the company to raise necessary funds. It is also seeking their nod to create charge on movable and immovable properties. Another resolution relates to creating charge on properties of the company to secure loans availed or to be availed by HGHL Holdings Ltd. The charge is in relation to State Bank of India to secure a letter of comfort for $300 million. Gulf Oil will provide security for the loans availed by its subsidiary HGHL Holdings Ltd UK. This loan will be additionally guaranteed by Gulf International Lubricants Ltd. In addition to these resolutions, the company will seek nod to transfer, sell or dispose of idle assets to a subsidiary company or any other company or person at a consideration that the board may deem appropriate. The Board will be authorised to act upon these issues.
According to a statement made to the exchange, the company has authorised company secretary A. Ravi Shankar as the scrutiniser for the postal ballot.
rishikumar.vundi@thehindu.co.in
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