Oil and Natural Gas Corporation may buyback within five years the 21 per cent equity lenders will have in the loss-making Mangalore Refinery and Petrochemicals Ltd after financial restructuring.
"As part of the financial restructuring package approved to make MRPL viable, we have an option to buyback equity from lenders within five years at a price of par value of Rs 10 per share compounded annually at 10.1 per cent interest," company sources said.
As part of the debt restructuring package, ONGC, which bought Aditya Birla Group's 37.4 per cent shareholding in MRPL for Rs 59.43 crore (Rs 594 million), would infuse Rs 600 crore (Rs 6 billion) additional capital while lenders would convert part of their Rs 5,492 crore (Rs 54.92 billion) debt into equity besides rescheduling loan payment and interest rates.
"Public Investment Board has cleared the acquisition of MRPL and it would now go to the Committee on Economic Affairs for final approval.
The Navratna board will thereafter consider further buying of equity in MRPL," they said.
