Essar Oil to delist from local bourses

Essar Oil Ltd, India's second biggest non-state oil refiner, today issued a public notice to delist the company from local bourses by buying out the non-promoter shareholding of 28.54 per cent at Rs 146.05 per share.
Delisting the company would give billionaire brothers, Shashikant and Ravikant Ruia, greater flexibility and less regulatory scrutiny. Essar Oil has signed an agreement to sell 49 per cent stake to Russia's OAO Rosneft.
Shares will be bought in a reverse book building, beginning December 15 and ending on December 21, the notice said.
In pursuance of the approval given by the Securities and Exchange Board of India (SEBI), Essar Oil will make good to the minority shareholders, the difference between the delisting offer price and the rate at which it sells 49 per cent stake to Rosneft.

"The proposed delisting of equity shares from the stock exchanges is to achieve complete operational or financial flexibility in furtherance of the company's business or financial needs and enable promoter shareholders and the promoter to pursue strategic opportunities in respect of its investments," the offer notice said.
The group has recently delisted Essar Energy from the London Stock Exchange and also made its locally listed ports business private.