Proxy advisory firm questions exemptions in Rs 369-bn ONGC-HPCL deal

Proxy advisory firm IiAS has questioned state-owned ONGC seeking exemption from taking shareholders' nod for acquisition of the government's stake in HPCL, saying such leniency with regard to public votes is not warranted. 
 

Oil and Natural Gas Corp (ONGC) bought the government's 51.11 per cent stake in Hindustan Petroleum Corp Ltd (HPCL) for Rs 369.16 billion. 
 

The acquisition price of Rs 473.97 per share was finalised on January 20 and the deal was completed as an off-market transaction on January 31 and ONGC is now asking shareholders to ratify it, IiAS said. 
 

The purchase qualifies as a related party transaction