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The Ministry of Corporate Affairs approved the proposal of Indian Oil Corporation (IOC) to merge its subsidiary Bongaigaon Refinery and Petrochemicals (BRPL) with itself, according to the state-run refiner and retailer. In a statement to the Bombay Stock Exchange, the company said that IOC owns about 74 percent in BRPL and the merger would be effective. The share transfer ratio has been fixed at four shares of IOC, for every 37 shares held in BRPL.
BPRL board of directors agreed for the merger long back, in November 2006, and the shareholders also approved the company’s merger with IOC, the parent company, last year. As per the statement given, the BRPL stands dissolved and the merger became effective on 25 March 2009 only, after filing of the Order of Amalgamation with the Registrar of Companies (ROCs) in Shillong and Mumbai and the same was taken on record by the respective ROCs.
With the merger getting through, the government has decided to sell its stake in BRPL and Chennai Petroleum Corp Ltd to Indian Oil Corporation. 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 record date for this will be notified at a later date.
