New Delhi: State refiner Indian Oil Corp on Wednesday said it has received the government approval for merger of Bongaigaon Refinery and Petrochemicals Ltd with itself.
IOC owns about 74% in BRPL and the merger would be effective Wednesday, the company said in a statement to the Bombay Stock Exchange.
Shareholders of BRPL will get four shares of IOC for every 37 shares they held.
“The Ministry of Corporate Affairs (the competent authority to approve mergers of Government companies) has sanctioned the Scheme of Amalgamation for merger of BRPL with IOC,” it said.
IOC had approved the merger of BRPL, which owns a 2.35 million tons a year oil refinery in Assam, in November 2006.
“Consequent upon filing of the Order of Amalgamation with the Registrar of Companies (ROCs) in Shillong and Mumbai and the same being taken on record by the respective ROCs, BRPL stands dissolved and the merger becomes effective 25 March,” the statement said.
The merger follows the government’s decision to sell its stake in BRPL and Chennai Petroleum Corp Ltd to IOC.
“The Scheme of Amalgamation provides for a swap ratio of 4:37 i.e. four equity shares of Rs10 each of IOC as fully paid for every 37 equity shares of Rs10 each of BRPL,” it said. The record date for this purpose shall be notified in due course, it added.