Promoters of EOL completes delisting offers

Oil Bidco (Mauritius) Limited, promoter of Essar Oil Ltd (EOL), has declared the successful completion of EOL’s delisting offer process, which has emerged as the largest privatisation bid in the history of corporate India, valuing EOL at INR 38,000 crore (USD 5.75B) of market capitalisation.

Of the 14.25 crore shares held by public shareholders, the Promoters have acquired 10.1 crore shares through an offer made to shareholders, as against the requirement of 9.26 crore shares for delisting. The shareholders tendered their shares between 15th December 2015 and 21st December 2015, through the reverse book building window made available to them under the delisting regulations. While the floor price for the delisting was set at INR 146.05 per share, Oil Bidco (Mauritius) Limited has agreed to pay INR 262.80 per share, which is a premium of 80%. The INR 3,745 crore that will be paid to shareholders makes this the largest pay-out to privatise a publicly listed company in India.

Commenting on the transaction, Mr Shashi Ruia, Founder Chairman, Essar said, “We are happy that we have been able to reward our public and institutional shareholders for the faith they reposed in us over the years. I want to take this opportunity to thank investors, stock exchanges and regulators for their support in this journey.’’
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