Monday, December 7, 2015

#Essar Oil to delist from the bourses

Essar Oil Ltd,India’s second biggest non-state oil refiner has announced to delist the company from the bourses. The notice to the stock exchanges was sent on December 5th 2015. The company has announced the floor price at Rs. 146.05 per share.
According to the notice, shares will be bought in a reverse book building, beginning December 15 and ending on December 21.
“The proposed delisting of equity shares from the stock exchanges is to achieve complete operational or financial flexibility in furtherance of the company’s business or financial needs and enable promoter shareholders and the promoter to pursue strategic opportunities in respect of its investments,” the offer notice said.
A Long Term Crude Oil Supply Agreement was signed between Essar Oil Limited and OJSC Rosneft Oil Company (‘Rosneft’) at Ufa, Russia for import of crude oil over a period of 10 years. Furthermore,Rosneft and Essar Oil & Gas Ltd / Essar Energy Holdings Limited, companies incorporated and managed under the laws of Mauritius, have signed a non-binding Term Sheet with regard to Rosneft’s participation in the equity capital of Essar Oil Limited with a share of up to 49%. The proposed transaction is conditional upon various factors such as due diligence, determination of the transaction price, and execution of definitive transaction documents and receipt of requisite approvals.