Ruias win shareholder approval to buy Essar Energy

Mumbai: Essar Energy Plc's majority stakeholder won shareholder approval to buy the company after other investors with a stake of 8.29 per cent tendered their shares in favour of the offer.

Essar Global Fund Ltd (EGFL), which owns about 78 per cent of the India-focused resources company, in March offered 70 pence for each share it does not already own. The valid acceptances from other shareholders effectively paves the way for EGFL, in which brothers Shashi and Ravi Ruia are beneficiaries, to delist Essar Energy despite opposition from minority shareholders.

The company also stated that it will be extending its offer to May 23 from May 9 to those shareholders and bondholders who had not yet tendered in their securities. Essar Energy said its independent committee set up to examine the offer would make an announcement in due course.