ONGC likely to buy out IL&FS stake in Mangalore Special Economic Zone

The deal is likely to be concluded at 'fair value' after ONGC's attempt to buy out the shadow lender's stake in JV at deep discount failed

Oil and Natural Gas Corporation (ONGC) is looking to buy out Infrastructure Leasing & Financial Services' (IL&FS') stake in Mangalore Special Economic Zone (MSEZ) after protracted negotiations. IL&FS holds 50 per cent equity in the company.
 

The deal is likely to be concluded at 'fair value' after ONGC's attempt to buy out the shadow lender’s stake in the joint venture (JV) at deep discount failed, said an official.
 

Under the shareholder agreement, two independent valuers would arrive at the 'fair value' through a discounted cash-flow method that uses future earnings estimates. Having started operations in April 2015, MSEZ reported a