The UAE-based Gulf Petrochem has announced that it will make an open offer to acquire an additional 26 per cent of India-based Sah Petroleums after buying 72.23 per cent stake in the company
Gulf Petrochem had also recently acquired the Shell’s bitumen unit in Indian state of Gujarat for around US$3.2mn.
S Thangapandian, executive director of Gulf Petrochem, told Economic Times, “We have so far been traders of bitumen, base oil and fuel oil. Now, we want to graduate to marketers and manufacturers, and India will play an important role in the strategy. We are looking at more acquisitions.
“The signal from the Indian government is positive and the investment climate looks good and, therefore, we felt that we can expand our presence in India and then take these brands overseas,” he said.
Gulf Petrochem will use Sah Petroleums’ presence in the industrial lubricants to expand its business in India.
“This acquisition fits our strategy to make Gulf Petrochem a global conglomerate operating in oil space and have an integrated portfolio and also extend its capabilities to manufacture, supply and globally distribute a wider variety of products, from base oils to finished lubricants,” added Sudhir Goyel, MD of Gulf Petrochem.
The open offer will close on 28 October, according to the company. At the open offer price, Sah Petroleums’ valuation stands at around US$13mn, Thangapandian added.
