Essar Completes Additional Payment to Former Shareholders of Essar Oil

Mumbai: Essar Group has paid former minority shareholders of Essar Oil an additional Rs 76.41 per share over and above the delisting price of Rs 262.80 paid earlier, as committed by the parent when it sold the oil company to Russia's Rosneft.

Essar Energy Holdings and Oil Bidco (Mauritius), erstwhile promoters of Essar Oil, disbursed a total of Rs 891 crore to erstwhile public shareholders of Essar Oil on December 11, Essar Energy said in a statement.

Essar Oil was delisted from the bourses in 2015 while it was in talks with Rosneft for a stake sale. The deal was signed in October 2016.

Capital markets regulator Securities and Exchange Board of India (Sebi) had asked the promoters of Essar Oil to pay an additional sum to shareholders if the deal valuation worked out higher.

The group sold Essar Oil to Russia's largest energy company Rosneft and its partners Trafigura and UCP Investment Group for $12.9 billion. Subsequently, it had committed the additional payout to shareholders.

The additional payout has been calculated on the basis of the equity price per share of Rs 338.28 received by Essar Energy upon completion of the Essar Oil deal, the company statement said.

“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%. This value creation has been made possible through continued strategic investments and growth of the business,” the statement said.

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