Singapore’s Netoil begins due diligence for Nagarjuna stake buy

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Chennai | Published: September 9, 2015 12:32:04 AM

Netoil Singapore, a Singapore-based oil major, has shown interest in picking up the entire 46.78% stake being held by Nagarjuna Oil Refinery...

Netoil Singapore, a Singapore-based oil major, has shown interest in picking up the entire 46.78% stake being held by Nagarjuna Oil Refinery (NORL) in Nagarjuna Oil Corporation (NOCL). The latter is the promoter of  a 6 million tonne refinery project in Cuddalore district of Tamil Nadu.

In a communication to stock exchanges, NORL said the board of directors at its meeting on Tuesday noted that the Singapore-based company has commenced work on confirmatory due diligence.

On satisfactory completion of the diligence, Netoil shall acquire the entire equity capital of NORL in NOCL,  subject to approval from lenders and all shareholders.

It  further said the lenders of NOCL have also commenced appraisal of the proposal of  Netoil for realignment of existing debt and approval of new debt for the completion of the project.

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