Essar oil bought out by rosneft-led consortium for $13 billion

essar Essar oilEssar oil: A consortium led by Russian Oil major Rosneft has acquired home grown Essar Oil for nearly $13 billion. Rosneft and its partners on Saturday took over India’s second biggest private oil firm in an all-cash deal in the backdrop of the BRICS Summit in Goa which kicked off.

According official statements, Rosneft has bought a 49 per cent stake in Essar Oil’s refinery port and petrol pumps, while Netherlands-based Trafigura Group Pte, one of the world’s biggest commodity trading companies, and Russian investment fund United Capital Partners split another 49 per cent equity equally. The remaining 2 per cent is held by minority shareholders after delisting of Essar Oil.

The deal has an enterprise value of close to $13 billion, which includes Essar Oil’s debt of $4.5 billion and about $2 billion debt with the port company and power plant. Also, the near $3 billion dues to Iran for past oil purchases will continue to be on Essar Oil books.The remaining 2 per cent is held by minority shareholders after delisting of Essar Oil.

The deal has an enterprise value of close to $13 billion, which includes its debt of $4.5 billion and about $2 billion debt with the port company and power plant. Also, the near $3 billion dues to Iran for past oil purchases will continue to be on its books.

Leave a Reply

Your email address will not be published. Required fields are marked *

Show Buttons
Hide Buttons