NEW DELHI: With the aim to attract a larger number of investors to take over public sector oil refiner Bharat Petroleum Corporation Ltd (BPCL), the government is looking at further stripping some assets from the parent entity while splitting the share sale plan into two phases.
Official sources said that trifurcation of BPCL’s assets may be carried out before the government’s shares are put up for sale to strategic investors. Also, the government’s 53.29 per cent in the company may be sold in two phases with only between 28-30 per cent of the equity shares to be offered in the first phase to strategic investors with transfer of management control.
“BPCL has few joint ventures where the holding of the other partner is substantial. It would be best to look at exit option from such joint ventures to avoid complications for strategic investors at a later stage,” another official with direct knowledge of the development said.
“Like a carve out for BPCL’s Numaligarh Refinery approved by the Cabinet on Wednesday, BPCL may also exit from its 50:50 joint venture with Oman Oil Company for 7.8 million tonnes Bina refinery in Madhya Pradesh before being put to sale to strategic investors,” the official added.