Essar Oil Public Shareholders to Receive an Additional Rs 880 Crore

MAURITIUS:
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 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.
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.