Indian Oil merger with BRPL approved

The state run Indian Oil received government’s consent to merge with the Bongaigaon Refinery and Petrochemicals Ltd. The ministry of corporate affairs sanctioned the merger scheme of both the firms.

IOC in a statement said to Bombay Stock Exchange that it owns 74% in BRPL and that the merger will be effective from today itself. IOC will issue 4 shares in every 37 they own in BRPL.

“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,” the company said.

IOC had nodded for the merger with BRPL in November 2006. BRPL owns 2.35 million tons a year oil refinery in Assam.

“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 March 25,” the statement said.

Consequential of the merging the government decided to sell its take 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 Rs 10 each of IOC as fully paid for every 37 equity shares of Rs 10 each of BRPL,” the company added in its regulatory statement.

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