ONGC Videsh Limited (OVL) is set to bag a deal to buy Imperial Energy for an estimated cost of $1.4 billion (Rs 11,200 crore). Apparently, the acquisition will be the third largest foreign acquisition by an Indian company. Earlier, ONGC had bid for Imperial Energy on July 12, through its Cyprus-based subsidiary Jarpeno Ltd. Evidently, ONGC will acquire Imperial through its wholly owned subsidiary, OVL.

 

Imperial Energy which was founded in 2004 as an oil exploration company has won oil blocks in Tomsk region of Siberia in Russia in an auction. Reportedly, Imperial Energys' directors pleasingly reached to an agreement with OVL and intend unanimously to recommend shareholders accept the offer. Admittedly, OVL has offered price of £12.50 per share.

 

R S Butola MD of OVL on the deal commented that the acquisition would provide the company an opportunity to enter the promising Tomsk region for oil exploration. He opined that it will also give an opportunity to expand its relations with Russia in the field of oil exploration. However, OVL's offer will now need the approval of Imperial Energy shareholders and some regulatory clearances for the finalization of the deal.