ONGC and the president of India have been engaged in discussions on a potential transaction for purchase by ONGC of the president's shareholding of 51.11% in Hindustan Petroleum in furtherance of the budget announcement by the government of India for creating an oil major which will be able to match the performance of international and domestic private sector companies.
The ONGC board approved the acquisition on January 19th of the entire 51.11% shareholding of the president of India at a cash purchase consideration of INR 473.97 per share with a total acquisition cost of Rs. 36,915 Crore. ONGC has entered into a share purchase agreement with the president for acquiring the 778,845,375 equity shares of HPCL on January 20th. The parties expect to complete the transaction before end of January.