As per HPCL plan, a total of 70 lakh shares held by ICICI Bank in Prize Petroleum would be acquired by HPCL. The acquisition of shares would take place at par value of Rs 10 each amounting to Rs 7 crore. A similar pattern would be followed while acquiring the 2 lakh shares held by ICICI Venture Capital for Rs 2 crore and 1 lakh shares held by HDFC for Rs 1 crore.
The partnership between the HPCL and its partner was established in the 1998. The purpose of the partnership focused on the exploration and production of oil and gas in India and abroad. In the partnership, HPCL holds a stake of 50% of the company, whereas, ICICI Bank holds 35% interest.
The stakes are further divided between ICICI Venture and HDFC with having 10% and 5 % stake respectively. "The Board of HPCL on April 15 approved acquisition of balance 50% shares held by other joint venture partners in Prize Petroleum Company Limited," a top company official said.
The acquisition, besides, making the Prize Petroleum a wholly owned subsidiary of HPCL, would also convert five crore Cumulative Convertible Preference Shares at the face value of Rs 10 each held in Prize Petroleum into five crores fully paid equity shares at par value of Rs 10 each.