OVL gets Russian approvals for Imperial Energy acquisition

OVL gets Russian approvals for Imperial Energy acquisition
PTI
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First Published: Tue, Nov 11 2008. 05 48 PM IST
Updated: Tue, Nov 11 2008. 05 48 PM IST
New Delhi: ONGC Videsh Ltd (OVL), the overseas investment arm of state-run Oil and Natural Gas Corporation (ONGC), has said that it has received all regulatory approvals from the Russian government for the acquisition of UK-listed Imperial Energy.
“Regulatory approvals have been granted in respect of the ownership of Russian entities by entities controlled by a foreign government,” OVL said in a filing to the London Stock Exchange.
Russia’s Federal Anti-Monopoly Service (FAS) had earlier approved the $2.59 billion deal under anti-trust laws.
OVL confirms that both of the Pre-Conditions to the Offer have been satisfied, the filing said.
However, surprisingly, OVL, despite being a wholly-owned subsidiary of a listed public sector company, choose to make the announcement on the acquisition only on the London Stock Exchange. It had done the same last week when it won the anti-trust ruling, keeping the vital information away from the BSE and the NSE where ONGC is listed.
OVL in its filing to the LSE said its acquisition of Imperial Energy, which has oilfields in Russia, was subject to approval of the Government Commission of the Russian Federation in respect of the restrictions on the ownership of Russian entities by entities controlled by a foreign government and that of FAS in respect of anti—monopoly regulations.
Both the approvals are in place now, it said.
“OVL will now make an open offer to shareholders of Imperial Energy in 28 days and the entire process would be completed in three months,” a top official of the company said.
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First Published: Tue, Nov 11 2008. 05 48 PM IST