The board of directors of Gulf Oil Corporation Ltd, a Hinduja group company, has decided to divest stake in three of its overseas subsidiaries.

Gulf Oil Yantai (51 per cent holding), Gulf Oil Indonesia (75 per cent holding) and Gulf Oil Bangladesh (51 per cent holding) are the three subsidiaries where the company is seeking to divest stake.

According to S. Pramanik, Managing Director, this divestment would help the company focus on the lubricants business in India and grow further with the de-merger of the lubricants business into a listed company, Gulf Oil Lubricants Ltd, formerly Hinduja Infrastructure Ltd.

The board of the Hyderabad-based company had enlisted the services of a valuer for these three subsidiaries. Based on the valuer’s inputs, the company has decided to divest the holding for an overall amount of Rs 54.9 crore. The company had invested Rs 29.1 crore in these subsidiaries.

The company in a statement to the BSE has informed that necessary steps will be taken to complete the divestment process over the next 2-3 months taking into account regulatory requirements in the countries where these subsidiaries were formed.

FUND RAISING

The annual general meeting of the company, which was held here today, passed a resolution that facilitates raising up to $100 million (about Rs 600 crore) to augment long-term financial resources of the company. This could be by way of issue of foreign currency convertible bonds (FCCBs) or through institutional placement.

Pramanik told Business Line that this is just an enabling resolution which helps us access funds.

Gulf Oil shares closed the day at Rs 76.65, down 2.29 per cent on the BSE today.

>rishikumar.vundi@thehindu.co.in

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