The former promoters of Essar Oil Ltd. (EOL) have paid out an additional ₹891 crore to the its erstwhile public shareholdersof EOL, or ₹76.41 a share, after the closure of the ₹86,000-crore Essar-Rosneft deal.
Essar Energy Holdings Ltd.imited (EEHL) and Oil Bidco (Mauritius) Ltd.imited (OBML), both companies incorporated and managed under the laws of Mauritius, have disbursed the amount on December 11, after the sale of EOL by EEHL and OBML to Rosneft and a consortium led by Trafigura and UCP, EEHL ssar Energy said in a statement.
Commenting on the deal, 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.”
Investors who successfully tendered EOL shares in the delisting cum exit offer of December 2015 are beneficiaries. of this additional payout of Rs 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 disbursement is in addition translates to an additional payment of Rs891 crores in addition to the ₹3,064 crore that was paid to EOL’s erstwhile public shareholders following its delisting in 2015 at the time.
EOL was valued at Rs 2,000 crore around the time of its listing in 1995, and as per the transaction has now been valued at about Rs 50,400 crore, a growth of 2,420%, said the statement adding that this value creation has been made possible through continued strategic investments and growth of the business.
