Essar plans $8-10 bn UK listing of energy biz | business | Hindustan Times
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Essar plans $8-10 bn UK listing of energy biz

business Updated: Mar 07, 2010 22:39 IST
Ruia

Ruia-controlled Essar Group is planning to go in for a $8-10 billion (Rs 36,400 crore to 45,500 crore) international listing (in London) of its energy business that includes coal, power, oil and gas.

Banking sources told Hindustan Times that Essar has already held discussions with international merchant bankers and is looking at a London listing of a holding company which will have its refinery, power, oil and gas exploration and production businesses.

When contacted, an Essar group spokesperson said, “Essar Group is always looking at a range of different funding options but has not yet made any specific decision with regards to its future financing.”

On Sunday, British daily, The Telegraph, reported that the group has appointed JP Morgan Cazenove as its advisor.

“The company will raise funds for its planned acquisitions such as that of the three refineries of Royal Dutch Shell and other expansion plans in the power and energy,” the source said.

Essar’s announcement of more than doubling of its gas chest to 7 trillion cubic feet valued at over $4 billion (Rs 18,400 crore) on Friday and its Rs 2,750-crore acquisition of US-based Trinity Coal a day later point to bigger moves.

“The company that will be listed in UK will be the group’s holding company,” the source said.

“Group Chairman Ravi Ruia, has been based in the group’s London offices in Berkeley Square for nearly four months, developing the group’s international plans, and his nephew, Prashant, the group chief executive, has been shuttling back and forth from Mumbai,” the report noted.