An Indian court has scheduled a meeting Thursday for stockholders of Gulf Oil Corp. Ltd. to consider managements proposal to spin off its lubricant business.
Hyderabad-based Gulf Oil Corp., a subsidiary of the Hinduja conglomerate, announced in August its intent to demerge Gulf Oil Lubricants Ltd. At that time the company did not mention plans to give stockholders a vote on the plan.
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But as first reported in the Hindu Business Line, the Andhra Pradesh High Court ordered that stockholders be allowed to vote their say on January 30.
Gulf officials said they still expect the plan to proceed. We confirm that there will be a date for shareholders to vote on our demerger scheme and that the final sanction of the court will take place once the shareholders approve the scheme, the company said in a statement to Lube Report Asia.
Gulf Oil Corp. has argued that it makes sense to separate the lubricant business because it is so different from the companys other activities. Gulf Oil Corp. is also engaged in mining services, supply of industrial explosives and supply of specialty chemicals.