Ruias may lose Essar Steel to PE investor Farallon: Report

Moneycontrol BureauThe billionaire Ruia brothers may lose hold of Essar Steel as lenders and private equity investor Farallon Capital may gain the majority stake in the debt laden company, reports the Economic Times.

Sources told ET that post a deal between lenders and Farallon with the company, the PE investor is likely to acquire 26 percent share in Essar Steel while a consortium of banks led by SBI will get 30 percent.

Farallon Capital will pay around Rs 2,000 crore for the equity and the banks' stake will come from converting about Rs 2,200 crore of the company's total Rs 44,000-crore debt into equity, sources further told the newspaper.

Essar group has earlier sold off its telecom arm to Vodafone and oil business in Gujarat to Rosneft and a consortium of Trafigura and United Capital Partners (UCP).