Morrison Cohen has advised the Government of India in the recent international selldown of its majority stake in Oil India Limited, the Indian oil exploration and production group, from approximately 78% of the company to approximately 68%. The sale generated approximately $585 million in proceeds.
The transaction was executed as an “Offer for Sale”, or OFS, a new type of regulated securities transaction in India, designed to help majority holders of Indian public companies reduce their shareholdings in order to comply with recent regulations intended to help modernize Indian corporate ownership and control. The OFS and other Indian offering mechanisms are expected to be used extensively in the coming months as majority shareholders across the Indian economy continue to reduce the sizes of their shareholdings.
The Oil India OFS was the second Offer for Sale ever undertaken internationally. Morrison Cohen advised the Government of India on the international aspects of both the Oil India OFS and the first international OFS, in which the Government sold shares of NMDC Limited and raised over $1 billion. Citi, HSBC and Indian investment bank Kotak Securities served as brokers for the Oil India transaction. Cleary, Gottlieb, Steen & Hamilton LLP served opposite Morrison Cohen, advising the brokers on the international aspects of the transaction.
