 "Gulf Oil nod for demerger of lubes division")
As part of its restructuring plans, GOCL had in May 2013 decided in-principle to demerge the lubricants division, its biggest revenue contributor (close to 80 per cent), into a separate listed entity.
In a filing to the BSE, GOCL said the appointed date for the proposed scheme of amalgamation would be April 1, 2014, and the proposed share exchange ratio was one equity share (face value of Rs 2) of GOCL and HIL for every two shares held in GOCL. The equity shares of HIL are also proposed to be listed on the stock exchanges.
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Meanwhile, the board of directors of GOCL has approved the dilution of 90 per cent stake by infusion of fresh equity by Gulf Oil International Limited, Cayman, in GHGL London Limited, UK. GHGL, a special purpose vehicle and a step-down subsidiary, was formed by GOCL for the 100 per cent acquisition of Houghton International Inc.
GOCL had in Nov 2012 signed an agreement to acquire Houghton for $1,045 million. Houghton, whose chemicals and lubricants are used in metal-working and automotive industries, was bought by New York-based private equity firm AEA Investors in 2007.
“With the proposed equity infusion, the said GHGL along with its all the step-down subsidiaries, including Houghton International Inc, will cease to be the subsidiaries of GOCL,” the company said.
Gulf Oil Q1 net dips 4%
Gulf Oil Corporation witnessed a 4.4 per cent decline in its net profit (standalone) to Rs 9.56 crore for the first quarter ended June 2013, as compared with Rs 10 crore in the corresponding quarter last year. Its total income from operations for the quarter under review remained flat at Rs 227 crore, a release stated.