Essar Oil, India's second biggest private refiner, said on Wednesday (30 December) it had completed delisting from local bourses in return for a Rs 3,745 crore ($563.94 million) payout to minority shareholders.
Essar Oil minority shareholders will get Rs 262.80 a share, representing a 2.3 per cent premium to the stock's closing price on Tuesday but an 80 per cent premium to the Rs 146.05 floor price it set earlier this month.
The transaction would value Essar Oil at Rs 38,000 crore ($5.72 billion), Oil Bidco (Mauritius) the promoter of Essar Oil said in a statement.
Essar Group, controlled by the billionaire Ruia brothers, has secured a $330 million loan from Russian bank VTB to delist shares in Essar Oil, two sources familiar with the matter told Reuters earlier this month.
Obtaining the loan was an important step for Essar Oil to allow it to move closer to a deal to sell a stake to Russia's top oil producer Rosneft. Essar wanted to delist shares of its unit before striking a final deal with Rosneft.
Essar, whose business interests include steel, oil and gas, power and ports, has been forced to consider selling some of its assets to reduce its debt pile, after expanding in India and overseas in the last few years.
Essar Oil's stock gained 0.18 per cent at 0826 GMT.
(Reuters)
_20240527192124_original_image_21.webp)
