Essar Energy Disburses INR 891 crore to Erstwhile Public Shareholders

MAURITIUS:
The erstwhile Promoters of Essar Oil Ltd (EOL), Essar Energy Holdings Limited (EEHL) and Oil Bidco (Mauritius) Limited (OBML), both companies incorporated and managed under the laws of Mauritius, have disbursed on 11 December 2017 INR 891 crores to erstwhile public shareholders of EOL translating into a price of INR 76.41 per share.
The announcement comes after the closure of the INR 86,000 crore deal involving the sale of EOL by EEHL and OBML to Rosneft and a consortium led by Trafigura and UCP. All shareholders who successfully tendered their EOL shares in the delisting offer cum exit offer made by the erstwhile Promoters in December 2015 are the beneficiaries of this additional payout of INR 76.41 per share calculated based on the closing price including the interest at 10% per annum for the extended period beyond the prescribed due-date. This translates to an additional payment of INR 891 crores in addition to the INR 3,064 crores that was paid to the erstwhile public shareholders following EOL’s delisting in 2015.
EOL was valued at INR 2,000 crore around the time of its listing in 1995, and as per the transaction has now been valued at about INR 50,400 crore, a growth of 2,420%. This value creation has been made possible through continued strategic investments and growth of the business.
Dhanpat Nahata, Director of EEHL said, “Essar Energy has successfully completed the payment to the erstwhile public shareholders of Essar Oil. This exceptional payout is unparalleled in the history of capital markets and aligns with our thinking of rewarding shareholders who had invested and believed in us. We feel proud to be a part of this transaction that has created so many worthy precedents.”