ONGC Videsh bids $2.5 bn for UK’s Imperial Energy | business | Hindustan Times
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ONGC Videsh bids $2.5 bn for UK’s Imperial Energy

business Updated: Aug 20, 2008 22:37 IST
Gaurav Chaudhury
Gaurav Chaudhury
Hindustan Times
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ONGC Videsh Limited (OVL), the overseas arm of state-owned oil exploration major ONGC, has made a non-binding offer to acquire controlling stake in United Kingdom’s Imperial Energy Corporation.

Officials close to the development said OVL submitted the offer on June 24.

Details of the acquisition price were not known, but an investment banker tracking the development, who spoke on condition of anonymity, pegged the bid at $2.5 billion.

This deal, if concluded, will strengthen ONGC’s overseas presence, which currently spans across 38 oil and gas projects in 18 countries. The move is part of an effort to secure energy assets abroad, so to sustain rapid economic growth back home.

A statement from Imperial Energy confirmed that it has received several bids, including a cash offer at 1,290 pence (about $24) per share, but the Leeds-based company did not name the bidder.

“There can be no certainty that an offer will ultimately be made for the company or as to the terms on which any such offer might be made. This announcement is being made without the consent of the potential offeror,” said the company that has a growing portfolio of oil and gas interests in West Siberia, with a potential to produce 900,000 barrels per day.

OVL declined to comment.

An official tracking the matter, said the company has sought government approval to authorise ONGC to provide funding and guarantee support for acquisition and participate in the project without seeking any budgetary support.

It has made a comprehensive presentation covering details of technical, legal and financial due diligence for the acquisition in a meeting of the empowered committee of secretaries last week.