Ruias go ahead with 70 pence/share offer for Essar Energy

India's billionaire Ruia family stuck to the 70 pence per share it indicated earlier for buying out the minorities in its London-listed Essar Energy Plc, an offer slammed again by the company's independent committee.

The committee said the offer from Essar Global Fund Ltd (EGFL) 'materially undervalued' the London-listed resources company.

"EGFL, which is ideally placed to assess the value of Essar Energy and its prospects, itself recognised in November 2013 that the company was worth at least 97 pence per share," Philip Aiken AM, the chairman of the independent committee, said in a statement on Friday.

EGFL, which owns about 78 percent of Essar Energy, said last month it was considering making an offer for the stake it does not own.

The indicative offer was rejected by the independent committee set up to assess the bid.

The company's minority shareholders Standard Life and Henderson Global had also called the offer opportunistic.

Brothers Shashi and Ravi Ruia are 'beneficiaries' of Essar Global Fund.

The independent committee on Friday also urged Essar Energy's shareholders and holders of its convertible bonds to take no action pending a further announcement.

Standard Life and Henderson declined to comment.