Speaking to CNBC-TV18 Deepak Shenoy of Capitalmind.in said that Essar-Rosneft deal won’t benefit any group companies of Essar, nor would the minority shareholders gain from it. There is also a lot of fresh equity to be issued to accommodate this transaction, he said.
On Saturday, Russian giant Rosneft announced it will be buying Essar's India refining business unde Essar Oil and a port in Gujarat’s Vadniar for a valuation of USD 13 billion, including assumption of debt.
Promoters will likely get a higher payout; it is a way for them not to pay the minority shareholders, Shenoy said.
Watch video for more...