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ONGC plans to sell stake in GAIL
By agencies
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Monday, 06 March 2006, 20:30 IST
MUMBAI: Oil and Natural Gas Corp (ONGC), the country's largest oil producer, said it plans to sell its shareholding in gas firm GAIL India Ltd but will hold on to its stake in Indian Oil Corp.
ONGCs Chairman, Subir Raha said, We don't have any plans to sell our stake in India Oil Corporation (IOC) but we are certainly looking at GAIL India Ltd. ONGC sees synergy in operations by holding IOC shares as the two companies had exchanged directors on each other's boards while GAIL had refused to do so.
Raha's comments come just a day after IOC sold half of its crossholding stake in GAIL for $127.5 million to repay debt and raise money for expansion plans. IOC also plans to sell one-fifth of its stock holdings in India's highest oil producer before March 31 this year.
ONGC has about 9.11 percent stake in IOC and 4.83 percent stake in GAIL. In turn, IOC owns 9.61 percent or 13.7 crore equity shares in ONGC and 2.4 percent or 4.08 crore shares in GAIL.