BW Communities

ONGC Videsh Wins...

BW Online Bureau Nov 08, 2014

<?xml version="1.0" encoding="UTF-8"?><root available-locales="en_US," default-locale="en_US"><static-content language-id="en_US"><![CDATA[ONGC Videsh Ltd (OVL) has won the bid to take over UK-listed Imperial Energy for £1.4 billion, outsmarting rivals such as China Petroleum and Chemical Corp (Sinopec) and Korean National Oil Company. The all-cash deal will enable OVL to tap Siberian deposits. A joint statement issued after an Imperial Energy board meet on Wednesday said the two companies “had reached agreement on the terms of a recommended pre-conditional cash offer for the entire issued and to-be issued ordinary share capital of Imperial Energy.” The offer values Imperial Energy at “approximately £1.4 billion” and is pitched at 1,250 pence per share, it said. “Imperial Energy’s directors are pleased to be able to reach an agreement with OVL and intend unanimously to recommend shareholders accept the proposed offer,” Imperial Energy executive chairman Peter Levine said. OVL managing director R.S. Butola said, “The acquisition represents an important addition to OVL’s operations and we believe OVL’s financial strength and technical expertise will enhance the attractive growth potential of the business in the Tomsk region (in Siberia).” The OVL cash offer of 1,250 pence a share is 61.9 per cent more than Imperial Energy’s share price on July 11, the statement said. Petroleum minister Murli Deora said, “For about a year now our people had been working on this transaction and we hope everything is sorted out in time.” OVL incorporated a wholly owned subsidiary — Jarpeno Ltd — in Cyprus to launch an offer for Imperial Energy in July, which prompted Sinopec to make a counter move. The Chinese firm decided not to submit a formal offer after conducting due diligence. Oil analyst Arvind Mahajan, executive director of KPMG, said, “The Chinese may still emerge with a last minute bid. However, as things stand, OVL appears to have clinched the deal as it has better relations with Russia.” The deal now awaits the approval of the Russian government. One of the state-controlled energy firms, either Gazprom or Rosneft, is likely to be involved in the transaction. OVL, which has 38 oil and gas projects in 18 countries, approached Imperial Energy, kick-starting a fierce global battle for the company whose assets are based in Russia and Kazakhstan. Indian explorers are looking to invest in oil projects in Russia, Kazakhstan, Iran and Africa as the Indian government expects economic growth to accelerate to as much as10 per cent by 2012, fuelling demand for vehicles and electricity. Imperial Energy produced about 10,000 barrels of oil per day in December 2007 and is aiming to raise this amount to 80,000 barrels per day by end-2011. Imperial has oil producing blocks in the Tomsk region of western Siberia in Russia and Kastanai in north-central Kazakhstan. According to the UK-based firm’s website, it has about 920 million barrels oil equivalent of proven and probable reserves at the end of 2007. Courtesy: The Telegraph