Ruias-promoted Essar Shipping, Ports and Logistics today said its shareholders and creditors have given nod for demerger of the company's shipping, logistics and oilfields business into a separate entity.
"... At the meeting, the equity shareholders, secured creditors and unsecured creditors of the company have unanimously approved the scheme (of demerger) under sections 391 to 394 of the Companies Act, 1956," the company said in a filing to the Bombay Stock Exchange.
The shareholders approval was sought on November 30 as per the directive of the Gujarat High Court to convene meetings of equity shareholders, secured creditors and unsecured creditors of the company, the filing added.
In August this year, the company had announced plans to separate its shipping, logistics and oilfields business into a separate entity, Essar Shipping, while the existing entity was to be renamed as Essar Ports.
"We believe the port sector has achieved maturity over the years and the time has come to ensure that the port sector (of the company) follows an independent growth path, which creates better value for stakeholders," Essar Group Director Prashant Ruia had said.
As per the proposed demerger scheme, Essar Shipping will issue one equity share for every three equity shares they hold in the existing company, while the promoters will continue to hold a 83.7 per cent stake in the new companies.
Elaborating on the demerger plan, Essar Shipping Director (Strategy) Vikas Saraf had said, "At the end, the shareholders will hold two shares in the existing company and one share in the new company."
The port division of Essar is currently the second largest in the country, with a capacity to handle 76 million tonnes (MT) of cargo every year. This includes 46 MT of cargo -handling capacity at Vadinar and 30 MT at Hazira. The company intends to raise this capacity to 158 MT per annum by 2013.
The debt of the present company -- Essar Shipping, Ports and Logistics -- will also be transferred to the two companies based on their current standing. The company, however, did not disclose the total debt.
Shares of the company closed at Rs 94.45 apiece on the Bombay Stock Exchange today, up 0.91 per cent from the previous close.
