Gulf Oil asks shareholders to raise borrowing limit to Rs 4,500 crore
Gulf Oil, through a U.K.-based subsidiary, in December purchased U.S.-based Houghton International Inc., a global player in metalworking fluids, for US$1.045 billion. The company is now seeking shareholders’ approval to increase its borrowing limit from the current Rs 2,000 crore (US$374 million) to Rs 4,500 crore (US$841 million), to enable the company to raise needed funds.
Gulf Oil is owned by the Hyderabad-based Hinduja Group Co.
Additionally, it is seeking approval from shareholders to create a charge on properties of the company to secure loans availed or to be availed by HGHL Holdings Ltd. The charge is in relation to a letter of comfort for US$300 million with the State Bank of India. Gulf Oil will provide security for the loans availed by its subsidiary HGHL Holdings Ltd. This loan will be additionally guaranteed by Gulf International Lubricants Ltd.
In addition to these resolutions, the company is seeking approval to transfer, sell or dispose of idle assets to a subsidiary company or any other company or person for a consideration that the board may deem appropriate. (January 26, 2013)