Essar Oil public shareholders to receive an additional Rs 880 crore or Rs 75.48 per share over delisting price

  • Former minority shareholders, who tendered EOL shares in the Delisting Offer of 2015, will receive the differential amount of Rs 75.48 for every share tendered
  • This is the additional payout over and above the price of Rs 262.80 per share paid to shareholders at the time of delisting on the basis of equity price per share of Rs 338.28 received by Essar upon completion of the deal
  • This is the first instance where public shareholders are being rewarded even after tendering their shares in a delisting
  • Total payout to increase from Rs 3,064 crore to Rs 3,944 crore

Mauritius, 22 August 2017: Essar Energy Holdings Limited (EEHL) and Oil Bidco (Mauritius) Limited (OBML), the Promoters of Essar Oil Ltd (EOL), are pleased to announce that they will pay to former minority shareholders, who tendered EOL shares in the Delisting Offer, an additional amount of Rs 75.48 per share, based on the current closing numbers, following the closure of the sale transaction with Rosneft and the Trafigura-UCP consortium. The payment of around Rs 880 crore will be in addition to the Rs 3,064 crore that OBML had paid to the minority shareholders following EOL’s delisting in 2015.

Essar Founder Mr Shashi Ruia said: “We have always believed in creating value for all our shareholders. I am extremely happy with this outcome where we could maximise returns for our shareholders who had invested and believed in us. This transaction has created many records and the additional payout to shareholders over and above the delisting price is another first in the history of corporate India. This resonates with our philosophy of rewarding shareholders handsomely”.

EOL was valued at Rs 2,000 crore around the time of its listing in 1995, and has now been valued at about Rs 50,400 crore, a growth of 2420%. This value creation was made possible through continued strategic investments and growth of the businesses since commencement.

Mr Dhanpat Nahata, Director of EEHL said, “Essar Energy has created value not only for itself but also for the minority shareholders. The additional payment to minority shareholders is unprecedented as they got exit and liquidity upon delisting in December 2015, retained the upside from the transaction that has closed 20 months later, without carrying any downside risk.”

The Promoters will shortly issue a public notice in this regard and as committed in the Delisting Offer of December 2015, the additional payout will be made within two months thereafter.

Delisting: Note to editors
Of the 14.25 crore shares held by public shareholders, OBML acquired 11.66 crore shares through the delisting offer (including during the one year exit window) made to shareholders, as against the requirement of 9.26 crore shares for delisting. The shareholders tendered their shares through the reverse book building window made available to them under the delisting regulations. While the floor price for the delisting was set at Rs 146.05 per share in accordance with a SEBI-mandated formula, OBML agreed to pay Rs 262.80 per share, which was a premium of 80% over the SEBI mandated formula. Now, with the additional payout, the total price paid represents a premium of about 132%.

About Essar Global Fund
Essar Global Fund Limited (EGFL) is a global investor, owning a portfolio of companies that control and operate a number of world-class assets, focused on India, and diversified across the core sectors of Oil & Gas, Steel, Power, Ports, Projects, Shipping, Mining, BPO and other services. The Fund’s portfolio companies have aggregate revenues of about US$15 billion. The Fund is managed by its investment manager, Essar Capital Limited.

About Essar Energy
Essar Energy Holdings Limited, Mauritius, an indirect subsidiary of EGFL, is a global investor, owning world-class oil & gas assets which includes Stanlow refinery in the UK and oil and gas blocks in India, Indonesia, Nigeria, Madagascar and Vietnam.

Media Contacts:
Manish Kedia, Senior Vice President – Corporate Affairs, Essar
Phone: +91 98197 30092, Email: manish.kedia@essar.com

Ravi Muthreja, Vice President – Corporate Communication, Essar
Phone: + 91 99301 34566, Email: ravi.muthreja@essar.com

Vaidyanathan A, Vice President, Essar Energy, Mauritius
Email: a.vaidyanathan@essar.com

Narayan Bhatt, Adfactors PR
Phone: +91 99799 15777; Email: narayan.bhatt@adfactorspr.com