Essar said it received Rs 338.28 per share and, as per its previous commitment, is sharing the same with minority shareholders.
Bankers to Essar Oil will get Rs 4,000 crore from Rosneft deal of Rs 82,740 crore (USD 12.9 billion) which will reduce Essar’s Group debt by Rs 70,000 crore
Earlier, Essar Oil's new non-executive director, Jonathan Kollek had said, "They (Essar Oil) cannot build a refinery, they cannot build petrol stations. There is a non-compete, forever."
Essar Group founder Shashi Ruia said this landmark transaction and the resultant debt reduction usher in a new phase of growth across the group portfolio.
The company said it feels the Essar brand is "very strong" and will be retaining the same at the petrol pumps.
After months of negotiations, the Essar group today announced the closure of its USD 12.9 billion deal to sell its refining arm to a consortium led by Russian oil major Rosneft.
An investment consortium comprising Trafigura and UCP has also announced the closure of their acquisition of a separate 49 percent share of EOL.
Rosneft will get a 49.13 percent stake in Essar and the Trafigura-UCP consortium via Kesani Enterprises Company Limited will get another 49.13 percent stake.
The agencies have communicated to the home ministry about their security concerns over the deal, the official, who did not wish to be named, said.
Rosneft head has that the company was working on a new strategy to counter the challenges of the global oil market and planned to pay higher 2017 dividends.
The deal, where Rosneft will hold a 49 percent stake, will allow the Russian company to increase oil refining output by 20 percent this year, he said.
"Rosneft, the Russian oil major, who recently took over Essar Oil, are planning in a bigway to tap retail fuel market in India," he told reporters after inaugurating City Gas Distribution (CGD) Project to supply eco-friendly natural gas to households, industries and transport sector, here.'
Crude oil production stood at 2.95 million tonnes in the same month last year, according to a statement by Petroleum Ministry today.
The state-run banks and financial institutions that are delaying Rosneft's biggest foreign acquisition hold about USD 500 million of Essar's debt, five industry and banking sources told Reuters.
Russian oil flows to India are expected to rise further once the Rosneft the deal to buy Essar plant is completed.
To begin with, daily revision of fuel prices will be implemented in Puducherry and Vizag in southern India, Udaipur in the West, Jamshedpur in the East and Chandigarh in the North, they said.
The company's 20 million tonne a year refinery at Vadinar in Gujarat processed 20.95 MT crude oil in the fiscal year that ended on March 31 (2016-17), a 10 per cent increase over the previous financial year.
State-owned and India's biggest oil marketing company Indian Oil Corp Ltd and its two smaller peers Bharat Petroleum and Hindustan Petroleum are considering ways to roll out the plan to review petrol and diesel prices daily, executives from the firms told the daily.
The purchase of Indian refiner Essar Oil by a consortium led by Russian oil company Rosneft has been delayed by a few weeks, the two sides said on Friday, because some Indian lenders to Essar have yet to sign off on the deal.
"The parties are working towards obtaining the requisite approvals to complete the transaction. We are hopeful that the deal will be completed in the upcoming few weeks," Essar said.
There are many Indian companies that have very high level of indebtedness. However, if the resolution doesn’t impact the banking system as a whole, these companies are unlikely to deserve significant attention.
Rosneft will acquire a 49 percent stake in Essar and another 49 percent will be shared between commodities trader Trafigura and Russian private investment group United Capital Partners. VTB is involved in the financing of the deal.
The Cabinet today approved pricing and marketing freedom to producers of natural gas from coal seams (CBM) and also allowed them to sell the fuel to affiliates.
State-owned Oil and Natural Gas Corp (ONGC) today said it will invest Rs 7,327 crore in developing four oil and gas projects, including the Ratna field which it had got back from Essar Oil.
A consortium led by Russian oil major Rosneft plans to finally complete its USD 12.9 billion acquisition of India's Essar Oil next month, two Russian sources close to the deal told Reuters.