In a move to consolidate non-public holdings of Essar Oil, Essar Energy Holdings, Mauritius decided to exercise the call option to buy 32.95 million shares or 2.41 percent stake in the former from UK’s Imperial Consultants and Securities.
It may be recalled that on April 6, 2010, Essar Energy entered into an agreement with Essar Investment for the call option. Later, Essar Investment demerged its investment division to Imperial and the agreement was amended subsequently.
Essar Energy Holdings, Mauritius is the 100 percent subsidiary of Essar Energy Plc. The option was exercised at a price of Rs 81.11 per share and the total consideration to be paid for the shares is $4.8 million. The purchase is being funded from funds available within Essar Energy.
Essar Oil has presence in both upstream and downstream assets in the country. It owns Vadinar refinery and a number of upstream exploration and production assets and downstream marketing assets.
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