Hinduja group firm Gulf Oil Corporation today said it plans to separate its lubricants business and merge it into a newly created unit, Hinduja Infrastructure, shares of which will be listed on stock exchanges.
As part of its business restructuring plans, Gulf Oil had in May decided in-principle to demerge the lubricants division, its biggest revenue contributor (close to 80%), into a separate listed entity.
The board of directors of the Hyderabad-based company have approved the share swap ratio.
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Gulf Oil shareholders will get one equity share each of the Hinduja Infrastructure (HIL) and Gulf Oil for every two shares in Gulf Oil currently, the company said in a statement to stock exchanges.
The transfer of lubricant business to HIL will be followed by restructuring of the share capital of both companies by way of a scheme of arrangement, it said.
The appointed date for the proposed scheme of amalgamation would be April 1, 2014.
"With the proposed equity infusion, the said GHGL along with its all the step-down subsidiaries, including Houghton International Inc, will cease to be the subsidiaries of Gulf Oil," the company said.
Gulf Oil reported a 4.4% drop in its Q1 profit to Rs 9.56 crore as compared to Rs 10 crore in the corresponding quarter last year. Its total income from operations for the quarter under review remained flat at Rs 227 crore.
