ONGC Videsh and Oil India to Acquire Videocon Mozambique from Videocon Hydrocarbon for US$2.47 Billion to Expand their International Oil and Gas Asset Portfolio - Deal Analysis from GlobalData

Jul, 2013   |   13  Pages   |   ISBN : GDGE0462M&A   |   GlobalData   |   Format : PDF


ONGC Videsh Limited (OVL) and Oil India Limited (OIL) have signed a definitive agreement to acquire Videocon Mozambique Rovuma 1 Limited (Videocon Mozambique) from Videocon Hydrocarbon Holdings Limited (Videocon Hydrocarbon) for a purchase consideration of US$2.47 billion. Videocon Mozambique possesses a 10% participating interest in the Offshore Area 1 block in the Rovuma basin, Mozambique.

The acquisition is expected to be implemented via a newly incorporated entity, in which OVL and OIL will hold 60% and 40% stakes respectively. Merrill Lynch & Company, Incorporated is acting as financial advisor and Robertson (UK) Limited is acting as technical advisor to OVL. Morgan Stanley is acting as financial advisor and Halliburton is acting as technical consultants to OIL. Ernst & Young is acting as tax and accounting advisor and Simmons & Simmons LLP is acting as legal advisor to OVL and OIL in the transaction. Standard Chartered PLC and UBS AG are acting as financial advisors to Videocon Hydrocarbon in the transaction.

The transaction is expected to be completed in Q4 2013, subject to the approvals of the governments of Mozambique and India, relevant regulatory approvals, pre-emption rights and other customary conditions.


- The report analyzes the rationale behind the planned acquisition of 10% stake in the Offshore Area 1 block, Rovuma basin by OVL and OIL.
- The report highlights the locational advantage for the Mozambique LNG project to supply LNG to Asian buyers.
- Geography Covered Mozambique

Reasons to buy

- To understand the significance of the planned acquisition of 10% stake in Offshore Area 1 block by OVL and OIL for the long-term strategic objectives of the acquiring companies.
- To be informed that the planned acquisition by the two Indian companies is aimed to enhance India's energy security.
- To be aware of the locatonal advantage for the Mozambique LNG project to supply LNG to Asian buyers.

1 Table of Contents
1 Table of Contents 1
1.1 List of Tables 1
1.2 List of Figures 2
2 OVL and OIL to Acquire Videocon Mozambique from Videocon Hydrocarbon for US$2.47 Billion 2
2.1 Deal Overview 2
2.2 Deal in Brief 2
2.3 Deal will Enable Indian Companies to Acquire Strategic Overseas Oil and Gas Assets, Ensuring Indias Energy Security 3
2.4 Acquisition of 10% Stake in Offshore Area 1 Block will Ensure Reliable Supply of LNG to India 6
2.5 Offshore Area 1 Block represents the Largest Gas Discovery in Offshore East Africa 8
2.6 Deal Financials and Valuations 9
3 Appendix 11
3.1 Abbreviations 11
3.2 Sources 11
3.3 Methodology 12
3.4 Contact Us 13
3.5 Disclaimer 13

1.1 List of Tables
Table 1: OVL, Select Acquisitions and Asset Purchase Transactions and Divestment Activity (US$ billion), 2012 to Present 6
Table 2: Videocon Hydrocarbon, Value of Oil and Gas Assets (US$ million), 2013 7
Table 3: Companies Involved 9
Table 4: Financials of the Deal 9
Table 5: Target Information 9
Table 6: Targets Acreage Information 9
Table 7: Company Valuation Multiples 10
Table 8: Acquirer Information 10
Table 9: Acquirer Information 10
Table 10: Vendor Information 11

1.2 List of Figures
Figure 1: OVL, Targeted Regions for Acquisition of Overseas Oil and Gas Assets, 2013 4
Figure 2: ONGC, Main Objectives Under Perspective Plan 2030, 2013 5
Figure 3: OIL, Main Objectives of Strategic Plan for 2020 to 2021, 2013 5
Figure 4: LNG Industry, Mozambique, Strategic Location of the Mozambique LNG Project, 2013 6
Figure 5: Natural Gas Industry, Mozambique, Location of the Offshore Area 1 Block, 2013 8

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