Date:18/01/2005 URL: http://www.thehindubusinessline.com/2005/01/18/stories/2005011802380300.htm

Back BPCL, Kochi Refineries boards okay 4:9 swap

Our Bureau

Mumbai , Jan. 17

THE boards of directors of Bharat Petroleum Corporation Ltd and Kochi Refineries Ltd (KRL) today approved a 4:9 swap ratio.

KRL shareholders would get four BPCL shares for every nine shares held by them. BPCL holds 54.68 per cent stake in KRL.

The ratio was arrived at by taking into account not only the performance of both the stocks on the bourses, but also historical earnings of both companies and earnings expected from future projects, said a senior company official.

Accounting firm N M Raiji and Co and merchant bankers Ernst & Young and ICICI Securities advised BPCL on the merger.

While marketing companies such as BPCL incur losses because of the prevailing subsidies, refineries saw their profits skyrocketing on account of the current high crude prices.

BPCL lost Rs 1,270 crore last year because of subsides on kerosene and LPG.