MUMBAI: Promoters of Essar Ports Ltd have fixed Rs.93.66 as the floor price per share for acquiring 10.72 crore equity shares from public shareholders.
At this floor price, promoters will have to shell out Rs.1,004 crore to buy out 25.06% in share capital from the public as a part of the delisting exercise, the company said in a filing to stock exchanges on Tuesday.
The promoter group, including Essar Shipping and Logistics Ltd, Essar Ports and Shipping Ltd (formerly Essar Port Holdings Mauritius Ltd), Essar Projects (India) Ltd, Essar Steel India Ltd and Essar Global Fund Ltd (formerly Essar Global Ltd), collectively holds 74.94% of the total share capital of Essar Ports.
Essar Ports said the proposed delisting of equity shares from the stock exchanges is to achieve complete operational and financial flexibility in furtherance of the company’s businesses and financial needs and to enable the promoter group to pursue strategic opportunities in respect of its investments.
“The promoter group believes that the delisting of the company’s equity shares will be in the interest of the public shareholders as it will provide them with an exit opportunity from the company in an open and transparent manner at a price calculated by the reverse book-building mechanism set out in the delisting regulations,” the company said.
A reverse book-building process is a mechanism of delisting under which shareholders tender their shares at their prices of preference. Thereafter, based on the preference of the majority of the shareholders, a delisting price is fixed. But the delisting price cannot go below a floor price already fixed by the company.
The bid offer will open on 30 October and close on 5 November.
On 12 October 2014, the Essar Group board approved delisting of subsidiaries Essar Shipping and Essar Ports from the bourses, citing lack of investor appetite and the promoter group’s need for increased flexibility.
