Essar Energy Jumps as Billionaire Owners Plan Share SalePeter Woodifield
Essar Energy Plc, an Indian oil and gas producer, rose the most in more than a year in London trading after saying its billionaire owners Ravi and Shashi Ruia plan to sell shares to bolster liquidity.
Essar Energy snapped an 11-day losing streak, climbing as much as 9.2 percent, the biggest intraday gain since October 2012. Trading volumes exceeded the three-month daily average by almost 90 percent.
The Ruia brothers, who own a 77 percent stake through Essar Global Fund Ltd., will cut their holding by the minimum necessary to meet U.K. free-float requirements, the Port Louis, Mauritius-based company said today in a statement.
Essar Energy traded up 4.7 percent at 101.7 pence as of 11:46 a.m. local time, paring its decline this year to 15 percent. The stock had fallen 77 percent through yesterday since becoming publicly traded in London in May 2010.
Companies must have a free float, or publicly available shares, of at least 25 percent to meet FTSE U.K. Index Series requirements.