Essar Steel to sell stake to promoter, delist its shares

New Delhi, Sep 11 (UNI) Essar Steel Holdings Ltd (ESHL) today said it proposes to acquire all outstanding equity shares of Essar Steel Ltd and consequently seek to voluntarily delist the shares from the Bombay Stock Exchange Ltd (BSE) and the National Stock Exchange of India Ltd (NSE).

Essar steel proposes to acquire all outstanding shares currently not held by it being 147,240,721 equity shares comprising 12.92 per cent of the equity share capital of essar steel ltd said a statement.

''The delisting of equity shares of the Essar Steel Ltd will offer more flexibility in the operations and management of the company, greater efficiencies and at the same time provide an exit opportunity for its shareholders,'' the statement added.

The shareholders have already approved the special resolution for delisting the shares from the Stock Exchanges.

The Floor price for the reverse book-building process as stipulated by the guidelines (RBB) has been computed as Rs 38.

Edelweiss Capital Ltd has been appointed as Manager to the Offer and the bid opens on September 24 and closes on September 28.

ESHL, a Mauritius-based subsidiary of Essar Global Ltd is the largest shareholder and promoter of Essar Steel Ltd holding about 87 per cent in it.

UNI