Essar Oil to delist the company from bourses at Rs 146.05 per share

Essar Oil to delist the company from bourses at Rs 146.05 per share
Homegrown non-state oil refiner Essar Oil has announced to delist the company from the bourses. The notice to the stock exchanges was sent on December 5, 2015, and 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 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 with a share of up to 49 per cent. 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.

Essar Oil is a fully integrated oil and gas company of international scale with strong presence across the hydrocarbon value chain from exploration and production to refining and oil retail. Essar Oil owns India’s second largest single site refinery having a capacity of 20 MMTPA and complexity of 11.8, which is amongst the highest globally.

It has a portfolio of onshore and offshore oil & gas blocks with about 1.7 billion barrels of oil equivalent in reserves & resources. There are about 1,500 Essar-branded oil retail outlets in various parts of India, with another 1500 in various stages of implementation.

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