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Essar Oil set to exit local bourses

Mumbai, June 20: The Ruia-controlled Essar group will now delist Essar Oil from local bourses after having delisted Essar Energy plc from the London Stock Exchange (LSE).

In a notice to the Bombay Stock Exchange, Essar Oil said it had received a letter from its promoter — Essar Energy Holdings Ltd (EEHL) — for a voluntary delisting of the equity shares of the company from the BSE and the National Stock Exchange by purchasing shares held by the public.

The Mumbai-based group wants to buy all the shares it doesn’t already own in Essar Oil. Turning it private would give billionaire brothers Shashikant and Ravikant Ruia a free hand to revamp the company.

At present, public shareholders hold 137.123 million equity shares, or 27.53 per cent.

“The promoter has requested the (Essar Oil) board to approve the delisting proposal; and seek the requisite approval of the delisting proposal from the equity shareholders of the company through a postal ballot,” the filing said.

Essar Oil has scheduled a board meeting on June 23 to consider the delisting proposal. EEHL, a company incorporated in Mauritius, holds a 71.22 per cent stake in Essar Oil.

The delisting proposal, EEHL said, was part of its business strategy of taking the entire hydrocarbon/energy business private following the delisting of shares of Essar Energy plc from LSE on June 10.

“EEHL believes that the company requires sustained, substantial investment to develop and grow its businesses (especially the refining and marketing business). Full ownership of the company will provide EEHL with increased operational/financial flexibility to support the company’s businesses and strategic needs,” the promoters said in a letter to Essar Oil.

Shares of Essar Oil today rose 1.64 per cent to end at Rs 108.40 apiece on the BSE while the Sensex ended 0.38 per cent down.

 
 
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