The board of privatisation-bound Bharat Petroleum Corporation Ltd (BPCL) on Monday approved the merger of its gas subsidiary, BGRL with itself in a bid to streamline corporate structure.
"The board of directors of the company at its meeting today, ie March 22, 2021, has considered and approved the Scheme of Amalgamation of Bharat Gas Resources Ltd (BGRL) with the company (BPCL)," the firm said in a stock exchange filing.
BGRL is a 100 per cent subsidiary of BPCL and its main business is gas sourcing and retailing.
The merger will streamline the corporate structure and consolidate the assets and liabilities of BGRL within BPCL.
Also, it will help in "availing easier financial support for the business" of BGRL and "more efficient utilisation of capital for enhanced development and growth of the consolidated business in one entity," BPCL said.
It will also improve management oversight and bring in operational efficiencies, cost savings and reduction of administrative responsibilities.
"The amalgamation is in the interest of the shareholders, creditors and all other stakeholders of the companies and is not prejudicial to the interests of the concerned shareholders, creditors or the public at large," it said. "No consideration in form of cash or shares is proposed to be issued as consideration for the amalgamation of BGRL with BPCL."