UAE-based Gulf Petrochem Makes Open Offer to Buy up to 26% Stake in Sah Petro
Mumbai: Gulf Petrochem Group, a UAE-based player in oil space, on Wednesday said it has made an open offer to acquire an up to 26 per cent stake in Sah Petroleums Ltd, a manufacturer of industrial and automotive oil lubricants in India, from its public shareholders.
The open offer has been made by Gulf Petrochem's subsidiaries - Gulf Petrochem Energy Pvt Ltd and Gulf Petrochem Pte Ltd - to acquire up to 13,255,940 equities representing 26 per cent of Sah Petroleums Ltd's share capital at a price of Rs 15.70 per share, a company statement said here.
The open offer will start on October 10 and is scheduled to close on October 28. Gulf Petrochem Energy and Gulf Petrochem Pte Ltd acquired 72.23 per cent in Sah Petroleums on July 31, 2014 pursuant to a share purchase agreement.
This open offer is being made in accordance with the provisions of the Securities and Exchange Board of India (Substantial Acquisition of Shares and Takeovers) Regulations, 2011.
"The timing of this deal is perfect as India gears up for its 'Make in India' campaign and the government is keen to shape business friendly policies, especially in the oil sector, which is set to open anytime now.
This acquisition fits our strategy to make Gulf Petrochem Group a global conglomerate operating in oil space and have an integrated portfolio and also extend its capabilities to manufacture, supply and globally distribute a wider variety of products, from base oils to finished lubricants," Gulf Petrochem Group managing director Sudhir Goyel said.
Sah Petroleums specialises in industrial lubricants, automotive lubricants, process oils, transformer oils, greases and other specialties under the brand name IPOL in India and overseas.
The acquisition will further bolster Gulf Petrochem Group's offerings which are currently divided into six divisions, i.e. refining, storage terminals, trading & bunkering, bitumen and grease manufacturing and shipping and logistics.
