Providing certain relaxation, capital market regulator Sebi today gave more time to the promoter of Essar Oil to finalise the delisting offer.
While directing the company to expeditiously make the public announcement about the delisting, the market regulator said the same price of proposed deal with Russia's Rosneft should be offered to the public shareholders.
With respect to certain allegations about the company's financial transactions, Sebi said it would refer the complaint to accounting regulator ICAI as the issue "appears to relate to the correctness of balance sheet".
Shareholders of Essar Oil approved the delisting proposal on August 6, 2014 while in-principle approvals from NSE and BSE were received on July 3, 2015 and July 15, 2015, respectively.
Sebi's order, issued on an application seeking certain relaxations filed by Essar Oil's promoter Essar Energy Holdings Ltd, said it should expeditiously make the public announcement about the delisting.
After the public announcement, the company has to dispatch the letters of offer within five working days.
"The promoters/company shall make the final application for delisting within a period of two months from the date of this order," Sebi said.
According to the regulator, the order is only with respect to relaxation to timelines related to the delisting process.
On July 10, Essar Energy Holdings had filed a letter with Sebi, saying the delay in the delisting process was not on account of the promoter.
As approvals from the board and shareholders were obtained and floor price set prior to the amendments to delisting regulations, Essar Energy sought relaxation in timelines for the delisting process.
Earlier this year, Ruias-promoted Essar Oil had signed a non-binding Term Sheet for sale of up to 49 per cent stake in the company to Russian oil firm Rosneft.
"In case the price offered/paid by Rosneft is higher than the discovered price arrived at in the reverse book building, the difference in price shall be paid to the shareholders who tender their shares to promoters in accordance with Delisting Regulations in the proposed delisting offer," it noted.
Once the transaction with Rosneft is finalised, the company and its promoters have been asked to issue a public notice stating the details, including number of shares to be purchased by Rosneft and the final consideration.
