ONGC evaluates merger of ONCG Mangalore Petrochemicals with MRPL

14-Jul-14

ONGC is evaluating a proposal to merge ONGC Mangalore Petrochemicals (OMPL) with Mangalore Refinery and Petrochemicals (MRPL). The PSU firm has appointed consultancy firm Deloitte to come up with a fair valuation of OMPL, as per sources in Financial Express. The petrochemical complex, set up over 442 acre in Mangalore, is expected to be commissioned by August, after a delay of more than a year. The R5,750 crore-worth petrochemical project is currently promoted by ONGC and MRPL, both of whom hold a total equity of 49%. The PSU firm is in talks with Kuwait Petroleum, Qatar Petroleum and Emirates National Oil Company, among others to sell remaining stake in OMPL. MRPL, a refinery firm, is also a subsidiary of ONGC, where the Maharatna company owns 71.63%. Another PSU firm, Hindustan Petroleum Corporation, has 16.96% stake in the refiner. The remaining 11.42% is being held by institutions, FII, DII, non-institutions and bodies corporate. In case ONGC decides to go-ahead with the proposal, MRPL would have to seek shareholder approval. Deloitte is expected to come up with the valuation and its recommendations by next month.