BPCL, subsidiary Bharat Gas to merge
Privatisation-bound Bharat Petroleum Corporation Ltd (BPCL) has approved the merger with its gas subsidiary Bharat Gas Resources Ltd (BGRL).
The energy major said in a stock exchange filing that BPCL approved the scheme of amalgamation of Bharat Gas Resources Ltd (BGRL) with it.
Bharat Gas is a 100% subsidiary of BPCL, and its main business is gas sourcing and retailing. The merger will streamline the corporate structure and consolidate the assets and liabilities of BGRL within BPCL.
According to BPCL, the merger will also help BGRL in availing financial support and better utilisation of capital for enhanced development and growth of the consolidated business in one entity.
It will also improve management oversight and bring in operational efficiencies, cost savings and reduction of administrative responsibilities.
BPCL said that the amalgamation is in the interest of the shareholders, creditors and all other stakeholders of the companies and is not prejudicial to the interests of the concerned shareholders, creditors or the public at large. The company added that no consideration in the form of cash or shares is proposed to be issued as consideration for the amalgamation of BGRL with BPCL.