News Roundup: OVL mulls new model to finance foreign acquisitions

20 September, 2013

Oil and Natural Gas Corporation Videsh Ltd (OVL) is considering a new model to finance its foreign acquisitions. Soon, the company may fund such acquisitions by giving pre-selling rights of crude oil to refineries and marketing companies. This comes at a time when the government is pushing public sector undertakings to fund foreign acquisitions solely through foreign debt, rather than cash reserves, as this wouldn’t affect the country’s foreign exchange reserves. When contacted, OVL Director (finance) S P Garg said, “We have many ways to finance our projects, including foreign bonds and bank loans. Taking finance against pre-selling crude oil is one such arrangement we are looking at, in tie-ups with refineries.” He, however, didn’t give the details of the pre-selling arrangement. Recently, OVL had acquired 10 per cent stake in a Mozambique gas field from Anadarko Petroleum for $2,640 million (about Rs 17,000 crore) in cash. The company has also exercised its pre-emption rights to block a deal by Chinese major Sinochem to acquire the BC-10 block in Brazil for $1.54 billion. In 2006, it had acquired 15 per cent stake in the BC-10 block for about $165 million. It plans to acquire an additional 35 per cent stake in the block, in a tie-up with Royal Dutch Shell. (Business Standard)

Trilogic plans to acquire entire business of Trinity Dream Works Pvt. Ltd.: Trilogic Digital Media Ltd. is planning to acquire the entire business of Trinity Dream Works Pvt. Ltd. The meeting of the board of directors of the company is scheduled to be held on September 27, 2013. The company is also planning to raise INR 400 crores, by way of issue of equity shares on preferential basis, out of which the company is planning to issue equity shares on preferential basis to Shrey Chemicals Ltd. up to atleast 24% of the post preferential issue paid up share capital of the company in cash or in kind. (BSE)

Courtesy: VCCEdge


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News Roundup: OVL mulls new model to finance foreign acquisitions

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