Gulf Oil to de-merge lubricants business into separate listed company

Gulf Oil Corp. Ltd.’s board has approved the proposal to de-merge its lubricants operations into a separate listed company as a part of its business restructuring plan, it said in a notice to the two stock exchanges in Mumbai, India, on February 7.
The Hyderabad-based Gulf Oil Corp. is engaged in lubricants, explosives manufacturing and real estate development.
The company also clarified that it has not yet sold the shares of its explosives business, IDL Explosives Ltd, as a part of its business restructuring plan. It had disclosed that it would be selling off its explosives manufacturing business.
The Hinduja group entity said that the restructuring plan would help the company focus on its lubricants business. The company, through its subsidiary in the United Kingdom, completed the acquisition of Houghton International Inc. in December 2012 for US$1.045 billion, after satisfactory conclusion of regulatory approvals in the U.S.A.
The acquisition through the step-down subsidiary ensures that the financials of GOCL will not be affected. The debt will be serviced through Houghton International Inc.’s cash flows.