Mumbai: Essar Shipping and Logistics Limited (ESLL) said on 19 February it will buy out the remaining 23.54 % stake from the non-promoters and public shareholders of Essar Shipping Ltd (ESL), the floor price for which has been fixed at Rs 31.62 per share.
ESLL would acquire up to a 100 million shares of Essar Shipping with the purpose of delisting the equity shares of ESL from the Bombay Stock Exchange.ESLL said the floor price is the average of last 26 weeks high and low closing prices at the BSE as per Securities and Exchange Board of India (SEBI) Guidelines.
The company said the buy back period would open on 5 March and close on 9 March. The company has appointed JM Morgan Stanley Pvt. Ltd. as the manager to the offer.ESLL said the delisting of the company would enable it to consolidate its interest in the company, enhance operational flexibility and ensure better management of ESL.
ESLL together with Persons Acting in Concert (PAC), which include Essar Investments, Teletech Investments, India Shipping, Essar Global and Asia Pacific Markets, cumulatively hold 76.46 % of the fully paid share capital of ESL.Essar Shipping and Logistics Limited (ESLL) is a wholly owned subsidiary of Essar Global, with investments in shipping and logistics business.