News Column

Essar Energy Managers Resign As Plan To Move Private Advances

May 19, 2014

Tom McIvor



LONDON (Alliance News) - Essar Energy PLC Monday said a range of non-executive Directors, including its Chairman and Vice Chairman, have resigned with immediate effect as part of the Ruia family's plan to take the company private.


The Indian oil company said its Chairman Prashant Ruia and Vice Chairman Ravi Ruia along with non-executive Directors Philip Aiken, Subhas Lallah, Steve Lucas and Simon Murray have all resigned with immediate effect.


The company said it has appointed Robin Yogendra with immediate effect as a director of the company and Chief Executive Sushil Maroo will continue as a director of the company despite the changes.


The news comes a week after independent directors of the company including Philip Aiken "reluctantly" recommended minority shareholders to accept an offer from the controlling Ruia family to take the company private.


Despite the decision, at the time the independent directors continued to argue that the GBP900 million bid for Essar's biggest shareholder undervalued the company.


The group made the recommendation after Essar Global Fund Ltd, the Ruia family investment vehicle announced two weeks ago that it had raised its stake in Essar to 86% after winning acceptances from nearly two-fifths of the minority shareholders since launching its offer in March.


The company applied for delisting on May 9, which should take place on June 10, assuming ratification by the Board.


The offer is for 70 pence per share, which is significantly lower than the 420 pence debut price the company achieved through its IPO in 2010.


Essar Energy shares were trading flat on Monday at 69.75 pence.








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Source: Alliance News


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