Essar Energy clears Rs 891-crore payout to EOL shareholders

The announcement comes after the closure of the Rs 86,000 crore deal involving the sale of EOL by EEHL and OBML to Rosneft and a consortium led by Trafigura and UCP.

By: ENS Economic Bureau | Mumbai | Published: December 13, 2017 1:07 am
Essar Energy clears Rs 891-cr payout to EOL shareholders All shareholders who successfully tendered their EOL shares in the delisting offer cum exit offer made by the erstwhile promoters in December 2015 are the beneficiaries of this additional payout.

The erstwhile promoters of Essar Oil Ltd (EOL) — Essar Energy Holdings Limited (EEHL) and Oil Bidco (Mauritius) Limited (OBML), incorporated in Mauritius — have disbursed Rs 891 crore to former public shareholders of EOL translating into a price of Rs 76.41 per share.

The announcement comes after the closure of the Rs 86,000 crore deal involving the sale of EOL by EEHL and OBML to Rosneft and a consortium led by Trafigura and UCP. “All shareholders who successfully tendered their EOL shares in the delisting offer cum exit offer made by the erstwhile promoters in December 2015 are the beneficiaries of this additional payout of Rs 76.41 per share calculated based on the closing price including the interest at 10 per cent per annum for the extended period beyond the prescribed due-date,” Essar said in a statement.

“This translates to an additional payment of Rs 891 crore in addition to Rs 3,064 crore that was paid to the erstwhile public shareholders following EOL’s delisting in 2015. EOL was valued at Rs 2,000 crore around the time of its listing in 1995, and as per the transaction has now been valued at about Rs 50,400 crore, a growth of 2,420 per cent, the statement said.

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