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Essar Energy Plc's 100% subsidiary Essar Energy Holdings Limited, Mauritius will purchase 32.95 million shares in Essar Oil Limited, India, representing a 2.41% interest (including Global Depository Securities (“GDS”), from UK's Imperial Consultants and Securities Private Limited.
The acquisition is pursuant to a call option agreement entered into with Essar Investments Ltd which subsequently demerged its investment division to Imperial. The call option agreement was entered into on 6 April 2010 (and amended subsequently).
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. "Essar Energy’s decision to exercise the option was driven by its desire to consolidate non-public holdings of Essar Oil," the company said in a press statement.
Essar Oil owns Vadinar refinery and a number of upstream exploration and production assets and downstream marketing assets. The purchase is being funded from funds available within Essar Energy.
