Sebi directs Essar Oil to match Rosneft's price for delisting
.jpg)
The capital markets regulator, Securities and Exchange Board of India (Sebi), has directed Essar Oil to match its delisting price with that being paid by Russian oil giant Rosneft for a 49 per cent stake in the company.
The regulator has also agreed to certain relaxations sought by the company for its delisting bid.
Rosneft is reportedly buying a 49 per cent stake in Essar Oil for $2.8 billion (Rs 18,500 crore), valuing the company at $5.7 bn (Rs 37,600 crore).
In comparison, Essar Oil’s market capitalisation on Friday was $4.1 bn (Rs 26,800 crore).
“The promoters have undertaken to pay the difference between the transaction price with Rosneft and the price discovered under the Delisting Regulations,” said Prashant Saran, wholetime member, Sebi, in an order on Friday.
Promoter holding at the end of the September quarter was 24.89 per cent. However, including Essar Oil’s $951-million global depository receipts, the holding works out to around 90 per cent.
By the Sebi order, the promoters will pay the price discovered in the reverse book building offer or Rosneft’s price, whichever is higher.
As for Sebi agreeing to certain exemptions in the delisting regulations sought by the promoters, these include a relaxation in strict enforcement of rule 10(1), where a company has to make a public announcement within one working day from the receipt of the in-principle approval from stock exchanges.
Sebi looked into the deal with Rosneft after getting some complaints over the agreement between the two oil companies.
“I note that the complaints apprehend that the interests of minority shareholders might be affected and they might be deprived of a possible better payout that the promoters may receive. However, the public shareholders have the benefit of both the reverse book building process available to them under the Delisting Regulations and any possible higher price paid by Roseneft to the promoters in terms of the undertaking given by the promoters,” Saran said in the order.
Essar Oil’s proposal to delist was approved by its shareholders in August 2014. The deal with Rosneft was announced in July this year.
Other Latest News
.webp)
At least nine people were burnt alive and 15 injured when a moving bus caught fire near Tauru in Haryana's Nuh district in the early hours of Saturday, police said.
The incident occurred around 2 am on the Kundli-Manesar-Palwal (KMP) Expressway. The bus was carrying around 60 people, all residents of Punjab's Hoshiarpur and Ludhiana, who were returning from pilgrim towns of Mathura and Vrindavan. All of them are relatives, police said.
.webp)
Softbank-backed OYO is set to refile its much-awaited IPO as the global travel tech player is close to finalising its refinancing plans to raise up to $450 million via sale of dollar bonds, sources said.
JP Morgan is the likely lead banker for the refinancing through the sale of dollar bonds at an estimated interest rate of 9 to 10 per cent per annum, a source said.
.webp)
The national capital on Saturday morning recorded a minimum temperature of 27.1 degrees Celsius, 0.6 notch above the season's average, according to the India Meteorological Department (IMD).
On Friday, Delhi witnessed 47.4 degrees Celsius in Najafgarh, making it the hottest place in the country.
.webp)
Shareholders in Nestle India have rejected a company proposal to increase royalty payments to its Swiss parent Nestle, the company said late on Friday.
The motion called for the royalty paid to its parent to climb to 5.25 per cent of net sales, net of taxes, compared to the current level of 4.5 per cent. The increase was proposed at a rate of 0.15 per cent per annum.
.webp)
Shares of Zee Entertainment soared up to 5.2 per cent at Rs 141.65 per share on the BSE in Saturday’s intraday trade. The hike in the stock prices came after the company delivered a turnaround in quarterly growth for the January-March quarter of fiscal year 2023-24 (Q4FY24).
In the March quarter, the company reported a consolidated net profit of Rs 13.35 crore, marking a reversal from a consolidated net loss of Rs 196.03 crore in the same period of the previous fiscal year.
.webp)
.webp)
.webp)
.webp)
.webp)
