- Corporate Governance
- Insider Trading
- Interesting News Sightings
- Investing Approaches
- Investing Themes
- Media & Me
- Oil & Gas Exploration
- Open Offers & Buy Backs
- Refining & Petrochemicals
- When the Heart Explodes through the helpless Mind
Essar Oil kissing Rs 200 ! ~ Exposes Delisting Duplicity !
For a year now and after Essar Oil announced intention to delist last year,I’ve been maintaining how the Promoters,Ruias are bent on short circuiting Minority Shareholders by delisting at a low price…here are some of my earlier blogposts in the matter
Monday, July 6th, 2015
Wednesday, July 23rd, 2014
Saturday, June 21st, 2014So many Corporate Governance Questions flood instantly through my mind on how could Essar Oil and it’s Promoters can be so brazen ?
- In June 2014 Essar Energy Holdings Ltd conveyed to Essar Oil a Floor Price to delist of just Rs 108.18! ~ thankfully SEBI put the delisting on hold
- Essar Oil has recently announced that the Russian Oil Giant Rosneft will be acquiring a 49% stake in Essar Oil subject to due diligence and determination of the transaction price !…and the shares that will go to Rosneft will be from the 65.64% stake in Essar Oil through Global Depositary Shares owned by Essar Oil & Gas Ltd and Essar Energy
- Essar Oil promoters hold 90.54 % of the Equity of Rs 1449.52 crs (FV Rs 10) through straight holding of 24.90 % and 65.64% through Global Depository Shares held by Bank of New York Mellon…..However both BSE & NSE continue to mislead by showing only 24.90% under Promoters
- Just Imagine if Essar Oil would have been allowed to delist last year with a floor price of just Rs 108.18,the promoters would have required just Rs 1530 crs to buy out the 9.46% shares they did not hold!
- Just Imagine what Price they will be selling to Rosneft !?….I’m sure it would be over Rs 108.18 ! which would effectively have implied buying cheap from us minority shareholders only to pawn it much higher to Rosneft !
And the Ruias will be crucified if they delist at a lower price than the price they will sell to Rosneft !