Rosneft to buy 49% stake in Essar Oil in an all-cash deal

Russian oil giant Rosneft has cemented the deal to buy 49 percent stake in Essar Oil. European commodities trader Trafigura and Russian fund UCP consortium will also pick-up 49 percent stake in Essar, leaving existing promotes Ruia family with 2 percent stake.
  • Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
GeStepAhead GrowMyMoney master your money IThe Winning Leap SME Special
Moneycontrol

Home » News » Business

Oct 17, 2016, 08.54 AM | Source: CNBC-TV18

Rosneft to buy 49% stake in Essar Oil in an all-cash deal

Russian oil giant Rosneft has cemented the deal to buy 49 percent stake in Essar Oil. European commodities trader Trafigura and Russian fund UCP consortium will also pick-up 49 percent stake in Essar, leaving existing promotes Ruia family with 2 percent stake.

Like this story, share it with millions of investors on M3

Rosneft to buy 49% stake in Essar Oil in an all-cash deal

Russian oil giant Rosneft has cemented the deal to buy 49 percent stake in Essar Oil. European commodities trader Trafigura and Russian fund UCP consortium will also pick-up 49 percent stake in Essar, leaving existing promotes Ruia family with 2 percent stake.

Post Your Comments

Share Cancel

Russian oil giant Rosneft has cemented the deal to buy 49 percent stake in Essar Oil. European commodities trader Trafigura and Russian fund UCP consortium will also pick-up 49 percent stake in Essar, leaving existing promoters Ruia family with 2 percent stake.

The deal values Essar Oil at Rs 72,800 crore and the company will get additional Rs 13,300 crore for its Vadinar Port.  

Rosneft will also acquire Essar’s 20 MTPA refinery at Vadinar and its 2,700 fuel outlets accross the country. The refinery accounts for 9 percent of India’s total refining output and is supported by a power plant with 1,010 MW capacity. 

The deal, announced at the on-going BRICS summit in Goa, is expected to be completed by the end of the first quarter of 2017.

"Investing in EOL, which operates one of the world’s most complex refineries and runs India’s largest private sector retail network, gives the new stakeholders a strong foothold in the Indian market that will witness robust demand growth for petroleum products in the long term. The growth for refined petroleum products in the Indian market for the next five years is expected to be in the 5%-7% range," Essar Oil says in a press release.

The company plans to use the stake sale amount to deleverage more than 50 percent of Essar Group’s debt, Prashant Ruia, Chairman & Non-executive Director of the Essar Energy said at a press conference.

The Group's debt stands at around Rs 88,000 crore. 
Buy, Hold, Sell ? Hear it first on M3
Rosneft to buy 49% stake in Essar Oil in an all-cash deal

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login