Rosneft, Essar Oil $ 13 billion deal to pay way for biggest FDI investment in India
New Delhi: Russian oil giant Rosneft, together with Singapore-based trading firm Trafigura and Russia-based financial investor UCP are likely to acquire 97.4 percent stake in Essar Oil for about USD 13 billion.
Britain’s Vodafone had paid $11.1 billion in cash and assume $2 billion in debt to buy a 67% stake in Hutchison Essar, one of India’s largest mobile operators with more than 22 million subscribers.
The deal is likely to be signed on Saturday in Goa, which includes taking over of USD 4.5 billion debt on Essar Oil books. Russian President Vladimirputin is attending the BRICS summit in Goa, where Prime Minister Narendra Mod is expected to join today.
As per reports, the board meeting of Rosneft cleared the transaction in Moscow on Thursday, to buy 49 percent stake in Essar Oil. Reports add that the equity valuation is around USD 7.5 billion. The other two investors, Trafigura and UCP, are likely to have 24.2 percent stake each in the company.
The sale of Essar Oil assets include the 20-million tonne per annum refinery, the Vadinar Power Company, two ports and 2,200 retail outlets-crucial for the refinery’s operations.
The deal is likely to take over Essar Oil’s debt of around USD 4.5 billion.
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Source:Zee news
