ESL plans to explore re-orgnisation opportunities

Mumbai, Jan 23: Essar Shipping Ltd (ESL) has announced a plan to explore opportunities for re-organisation or consolidating the business of ESL with certain other businesses of Essar Group to become a one-of-a-kind integrated logistics company.

The Company Chairman Mr Shashi Ruia said, ''The re-organisation or consolidation will aim to align all Essar Group's logistics infrastructure related companies under one roof. We believe this will allow us to provide end to end solutions to our customers and will provide ESL shareholders a larger, balanced platform for growth. It may also help ESL create value in the ports and terminals business in future and to facilitate organic and inorganic growth in this sector.''

As part of this re-organisation exercise, the Company is exploring the option of bringing the drilling and exploration business Essar Oilfields Services Ltd and several ports and terminal assets under itself. With interests in dry bulk ports and oil terminals, crude and dry bulk carriers, port to plant logistics and oil field services. This re-organisation will enable ESL to provide end-to-end solutions to its customers.

The Re-organisation Committee was also authorised to appoint financial advisors, legal advisors as well as independent valuers for carrying out valuations to recommend swap ratios and acquisition values for any mergers or arrangements that may be considered by the Re-organisation Committee.

In addition, the Board has passed an omnibus resolution authorising various capital raising alternatives and to facilitate this process has appointed a 'Finance Committee'. The Board is also exploring changing the name of the company.

Any re-organisation proposed by the committee(s) and any capital raised by ESL is subject to shareholder and regulatory approval. To give effect to the above, an Extraordinary General Meeting has been scheduled on February 23, 2008.

UNI