Essar Group makes delisting offer to Essar Steel shareholders

MUMBAI: In pursuance of its announcement to delist Essar Steel, the Ruias-promoted Essar Group has made an offer for buying shares held by the public, representing about 13 per cent stake in the company.

Essar Steel Holdings, an Essar Group company, has made an offer to the shareholders of Essar Steel for acquiring the remaining 12.92 per cent stake, comprising 14.72 crore shares in the company, it said in a filing to the Bombay Stock Exchange.

The promoters already have 87.08 per cent stake in the company, while they need a minimum of 90 per cent stake to delist the company. As per the offer, shareholders would have to place their bids around the floor price, after which the company would decide on the exit price.

The company has fixed a floor price of Rs 38 a piece for buying the stake from public shareholders.

The bidding process for the shareholders would open on September 24 and close on September 28.

Essar Steel Holding had said that delisting is meant to offer exit opportunity for shareholders and to offer more flexibility in running the company.