Essar Oil Ltd.’s erstwhile shareholders who sold their stake when it delisted in December 2015 will receive Rs 880 crore as an additional payout after Russia’s Rosneft and a Trafigura-United Capital Partners consortium acquired India’s second largest refiner for $12.9 billion.
That’s Rs 75.48 over and above the per-share price of Rs 262.8 at which they had sold their stake to Essar Oil's promoters, the company said in a press release.
The additional payout follows the Securities and Exchange Board of India's direction in November 2015 as the company was already in deal talks. The regulator said that in the case of a sale being finalised, the then promoters of Essar Oil will have to pay the differential between the delisting price and deal price to minority shareholders participating in the delisting.
Rosneft and the Trafigura-UCP consortium announced the closure of the deal to acquire 98.26 percent stake in Essar Oil on Monday. They acquired shares at Rs 338.28 apiece.
The total payout to former shareholders will rise to Rs 3,944 crore, the company said.
Essar Group's Founder Shashi Ruia said that the payout will create shareholder value and “this transaction has created many records”.
The Ruias will have to pay the excess amount to shareholders within the next two months, as per SEBI’s direction.
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