Oil and Natural Gas Corporation (ONGC) signed a deal to acquire 51.11% government stake in Hindustan Petroleum Corporation Limited (HPCL).As per media reports, ONGC has got approval from the government for selling its stake in IOC and GAIL to help fund its acquisition with HPCL for which it requires ~Rs36, 915cr.ONGC currently holds 13.77% stake in IOC which at current Mcap values to ~Rs 26,000cr. In GAIL, it holds ~4.86% stake valuing to ~Rs3900cr bringing the combined stake sale value to ~Rs29, 900 cr.The company is currently evaluating various options for funding its HPCL acquisition. ONGC management is considering its cash first, followed by its liquid assets, although it won’t sell its liquid assets in distress. Company also has offers over Rs50, 000cr debt at a very competitive rates.
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