India's Essar Oil Delists Shares in $564 Million Offerby
Delisting is largest by Indian company, Essar Group Says
Offer price of 262.80 rupees is at 80% premium to floor price
Essar Oil Ltd., India’s second-largest non-state refiner, completed delisting it’s shares from Indian stock exchanges Wednesday for 37.5 billion rupees ($564 million).
The founder billionaire Ruia brothers acquired 101 million shares of the 142.5 million held by the public for 262.80 rupees a share, an 80 percent premium over the floor price of 146.05 rupees each, Essar Group said in a statement. The offer price values the company at 380 billion rupees, it said.
In July, OAO Rosneft signed a 10-year crude-supply pact and a non-binding memorandum to buy a 49 percent stake in Essar Oil, the Indian company said at the time. Russia’s largest oil producer offered to buy half of Essar Oil for as much as 195 rupees a share, the Times of India reported last month, citing people it didn’t identify. That’s about 26 percent lower than the delisting offer price.