Shell profit rises on higher US oil and gas prices

Power Watch India - - DESPATCHES FINANCE -

Rus­sian gi­ant Ros­neft is of­fer­ing around $2.4 bil­lion for a 49% stake in Es­sar Oil, In­dia’s se­cond largest re­finer, as per news re­ports.

Ros­neft, which is in the fi­nal stages of due dili­gence, is ex­pected to of­fer just un­der Rs 200 per share. This val­ues the stake sale at $2.4-2.5 bil­lion. A for­mal an­nounce­ment is ex­pected only early next cal­en­dar year.

In July this year, Ros­neft had signed a pre­lim­i­nary, non-bind­ing agree­ment to buy up to 49% in Es­sar Oil. The world’s largest pub­licly traded oil com­pany will ef­fect a sec­ondary pur­chase, buy­ing shares from the Ruias of Es­sar, who are in turn mak­ing a delist­ing of­fer to the pub­lic share­hold­ers. The Ruias cur­rently own 73% stake.

Sebi has di­rected Es­sar Oil to match the delist­ing price with the of­fer made by Ros­neft. The delist­ing process is in­de­pen­dently man­aged by the Ruias and is not linked with Ros­neft share pur­chase. The Ruias will con­trol 51% once the delist­ing and Ros­neft deal are fi­nalised. The Ruias and Ros­neft, ma­jor­ity owned by the Rus­sian govern­ment, will jointly man­age the com­pany with In­dia’s se­cond largest sin­gle-lo­ca­tion re­fin­ery. The con­tract will en­sure sup­plies of 10 mn tonnes per an­num of crude oil and feed­stock to Es­sar’s Vad­i­nar re­fin­ery over a pe­riod of 10 years.

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