United Arab Emirates-based oil products trader Gulf Petrochem Group is in the midst of an initiative to buy Indian lubricant supplier Sah Petroleums, according to stock exchange records and a Sah official.
Gulf Petrochem already operates a grease plant, but acquisition of Sah would immediately make it one of the largest suppliers of industrial lubricants in India.
According to a June 25 filing on the Bombay Stock Exchange, two Gulf Petrochem arms – Gulf Petrochem Energy Pvt. and Gulf Petrochem Pte. – offered to pay up to Rs 20.02 crore (Rs 200.2 million or U.S. $3.3 million) for the 25 percent of Sah stock that is publicly traded.
Sah Petroleums Company Secretary and Compliance Officer D. Malla Reddy confirmed Thursday that Gulf Petrochem also offered to buy the 75 percent of Sah shares that are privately held. Indian business news group VC Circle previously reported that Gulf Petrochem had reached an agreement to pay Rs 60 crore to buy out the Sah family, which owns 75 percent of the company.
The June 25 filing and a follow-up July 1 filing indicate that owners of publicly traded shares have until Sept. 1 to accept Gulf Petrochems offer. Reddy said the transaction for the privately held shares is proceeding.
Sah declined further comment, and Gulf Petrochem also declined to comment.
Gulf Petrochem is primarily a trader and logistics service provider for oil products, but it operates a small refinery in Sharjah, U.A.E. – also the site of its headquarters – and has been building a second refinery in Tanzania.
Sah Petroleums is based in Mumbai and manufactures a wide range of industrial and automotive lubricants, specialty and process oils, much of which are marketed under the Ipol brand name.