-
HOEC updates on acquisition of Hardy Exploration & Production India Inc.
Hindustan Oil Exploration Company Limited (HOEC) had earlier made an announced regarding conditional agreement to acquire the entire share capital of Hardy Exploration & Production (India) Inc. (“HEPI”) and has provided updates on the deal.
The Company had entered into a conditional agreement with Hardy Oil and Gas PLC (“Hardy”), a company listed in London, to acquire the entire share capital of HEPI, a company incorporated in the State of Delaware having an Indian Project Office, for a cash consideration of US$ 1,500,000.
HEPI holds Participating Interest in certain oil and gas blocks in India viz, Blocks PY-3, CY-OS /2 and GS-OSN. The Company holds 21% Participating Interest in Block PY-3 and considering the opportunity to achieve an operating synergy the above transaction was contemplated.
The completion of transaction was conditional upon Hardy obtaining the approval of its shareholders and other regulatory approvals on or before the Longstop date of September 30, 2019.
However, subsequent to the offer made by the Company, it came to our knowledge that Hardy received an unsolicited offer of a significantly higher consideration of US$ 8,750,000 from another Indian company – Invenire Energy Private Limited (Invenire) to acquire HEPI.
Pursuant to the offer made by Invenire, Hardy entered into a second conditional share purchase agreement with Invenire despite the initial agreement entered with the Company, and thereafter the Board of Hardy unanimously decided to proceed with the sale of HEPI to Invenire.
Hence, the conditions for completion of transaction not being achieved for the reason stated above, the impact of the initial agreement entered with the Company is yet to be dealt with by Hardy.
Share This
