Oil and Natural Gas Corporation (ONGC) to acquire 51.11% stake in Hindustan Petroleum Corporation (HPCL) for Rs.369.15 billion.

The acquisition price is at 13.8% premium to HPCL’s closing share price on Friday, 19 January. ONGC will not have to make an open offer and it is expected that the deal will be completed by the end of January 2018.

Further, ONGC will use a mix of debt, cash reserves and proceeds from a planned sale of stakes in IndianOil and GAIL to fund its acquisition of HPCL.

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