MRPL board approves 100% CCD acquisition from OMPL

 The board of the directors of Mangalore Refinery and Petrochemicals Ltd. (MRPL) has approved the acquisition of up to 100% of the compulsorily convertible debentures (CCD) issued by ONGC Mangalore Petrochemicals Ltd. (OMPL) from the debenture holders for an aggregate consideration of up to Rs. 1,000-crore.

OMPL is a wholly owned subsidiary of MRPL. The fourth quarter of 2021-22 has been set as the indicative time period for the completion of the acquisition. MRPL informed the stock exchanges that the CCDs will be purchased from unrelated third parties. Upon the merger becoming effective, the CCDs shall stand extinguished and cancelled in entirety without any consideration and without any further act or deed, it informed the stock exchanges. The CCDs will be purchased at par value of Rs. 1-crore per CCD, plus accrued interest thereon. MRPL proposes to acquire up to 1,000 number of CCDs being 100% of the outstanding CCDs issued by OMPL. Credit facilities

The meeting of the board of directors of the company also approved the availing of credit facilities of an amount up to Rs. 1,025-crore from any bank / non-banking financial company / financial institutions / mutual fund / any other person, with or without security over the assets of the company. This amount will be availed for the purpose of funding the acquisition of the CCDs issued by OMPL.

On raising of funds by issuance of perpetual bonds, the board of directors advised the MRPL management to have further consultations with the proposed investors. The company informed the stock exchanges that no decision was taken in respect of issuance of perpetual bonds. OMPL has an aromatic complex in Mangalore Special Economic Zone (MSEZ) with 442 acres of land. Incorporated on June 19, 2006, the Greenfield project was commissioned in October 2014 at a total cost of Rs. 6,911-crore. OMPL produces para-xylene and benzene. OMPL was jointly promoted by Oil and Natural Gas Corporation Ltd. (ONGC) and MRPL with shareholding in the ratio of 49% and 51%, respectively.

Later, MRPL fully acquired the ONGC shares in OMPL. The boards of MRPL and OMPL have approved the scheme of amalgamation of OMPL with MRPL, and a joint application has been fi led with Ministry of Corporate Affairs on July 7, 2021

Source : Chemical Weekly