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Mangalore Refinery and Petrochemicals Ltd (MRPL) has completed the acquisition of ONGC-Mangalore Petrochemicals Ltd (OMPL).
On December 3, the board of the directors of MRPL had approved the acquisition of up to 100 per cent of the compulsorily convertible debentures (CCD) issued by OMPL (a wholly owned subsidiary of MRPL) from the debenture holders for an aggregate consideration of up to ₹1,000 crore. The fourth quarter of 2021-22 was set as the indicative time period for the completion of the acquisition.
Referring to this decision, MRPL informed stock exchanges on Wednesday that it has completed the acquisition of the CCD from unrelated third parties.
While addressing the queries of shareholders at a meeting convened by the Union Ministry of Corporate Affairs on the amalgamation of OMPL and MRPL in November, M Venkatesh, Managing Director of MRPL, had also stated that the merger was expected to be completed by Q4 of 2021-22.
With 442 acres of land, OMPL has an aromatic complex in Mangalore Special Economic Zone (MSEZ). Incorporated on June 19, 2006, OMPL was commissioned in October 2014 at a total project cost of ₹6911 crore.
OMPL produces paraxylene and benzene. These products are sold mainly internationally through exports.
OMPL was jointly promoted by Oil and Natural Gas Corporation Ltd (ONGC) and MRPL with shareholding in the ratio of 49 and 51 per cent, respectively. Later, MRPL fully acquired the ONGC shares in OMPL.
The turnover of OMPL was at ₹8,567.41 crore for 2018-19, ₹4,954.17 crore for 2019-20, and ₹3,388.79 crore for 2020-21.
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