Essar Oil on Wednesday bought out the entire public shareholding for Rs 3,745 crore for delisting itself from the exchanges. Investors got a premium of 80 per cent as Essar promoters paid Rs 262.80 per share against the floor price of Rs 146.05. This gives the country’s second largest refiner a valuation of Rs 38,000 crore ($5.75 billion).
While going private gives the company operational and financial flexibility as it eliminates going to shareholders or the exchanges for approvals etc., it also gives the company freedom in its current negotiations with Russia’s oil giant Rosneft.
106 total views, 1 views today