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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Essar Energy | ESSR | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| 0.00 | 0.00% | 69.50 | 00:00:00 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 69.50 | 69.50 |
| Top Posts |
|---|
Posted at 15/5/2014 16:34 by kololo123 Four investors I spoke to will not sell but will take their chances with the ensuing legal challenge. Point to ponder. |
Posted at 15/5/2014 10:15 by kololo123 A bunch of crooks from the Indian state of Gujrat which will provide Indias next prime minister. Any Indian company hoping to come to listing in London will be viewed as crooked as the ESSAR family mafia bent on mugging the investors. |
Posted at 14/3/2014 10:17 by idle dreamer Essar Energy Minority Owners Face Friday Deadline for SweetenerBy Selina Williams LONDON--Minority shareholders in oil company Essar Energy PLC are expected to find out Friday whether its Indian owners will raise their offer to buy them out, in the latest in a string of shareholder controversies that have damaged the reputation of London-listed emerging market resource companies. The billionaire Ruia brothers have until 1700 GMT Friday to make a formal bid for the 22% of Essar they don't already own. Last month the pair--Shashi and Ravi--made an informal offer of 70 pence per share through their Essar Global Fund investment vehicle, a far cry from the 420 pence price at which Essar floated in April 2010. Late Thursday, Essar was trading at 67 pence a share, a sign investors don't expect a significantly higher offer. An independent committee of Essar Energy's board has already said the brothers' offer didn't reflect the company's true value and future growth prospects. The initial offer triggered a 28-day period during which the Ruias could complete the deal terms, a period which ends Friday, or request an extension to Friday's deadline. If no offer is forthcoming, Essar Global would have to wait six months to make another offer. David Cumming, head of equities at Standard Life Investments, a top 10 Essar Energy investor, said Essar Global's attempt to buy out minority shareholders was "a calculated attempt to deprive minority shareholders of the substantial future upside in Essar Energy's valuation." The sharp fall in Essar Energy's share price in late 2013 worried management at Essar Global and prompted them to look into buying back the minorities stake, a person familiar with their position said. "They [Essar Global] were left with no choice but to take radical action, " said the person. The informal offer amounted to GBP900 million ($1.5 billion) offer to buy out minority investors. Current U.K. rules effectively allow a shareholder with over 75% of a company's shares to push through a buyout, because a stake of that size means they can unilaterally pass so-called company special resolutions. That means minority holders risk being left with a stake in a private company and no way of protecting their investment. "What is happening [at Essar] is a classic illustration of the dangers of shareholders investing in a company where they are a significant minority. These are lessons shareholders will apply elsewhere," said one investor who bought into Essar Energy's initial public offering but who has since exited the stock. The situation at Essar follows corporate governance battles involving major shareholders at Indonesian coal miner Bumi PLC and Kazakhstan-focused Eurasian Natural Resources Corp. PLC. Bumi became embroiled in a long-running boardroom battle that pitted its former 48%-owners the Bakrie family against financier Nat Rothschild. ENRC was taken private last year by its oligarch founders and the Kazakh government after the company's share price slumped. U.K. market regulator the Financial Conduct Authority is already consulting on new rules that would offer more protection for minority investors. But it also doesn't want to deter global resource companies from listing in London, especially as the IPO market ramps up. Nigerian oil company Seplat said this week it plans to float a 25% stake on both the London and Nigerian stock exchanges, raising $500 million primarily to fund acquisitions. The company's Nigerian founders will remain its largest shareholders, along with French energy company Maurel & Prom SA. "Perhaps we won't see quite as many companies coming here now because the investor base will be a bit more cautious, but that could overall be beneficial to respect for the market in London," said a person familiar with company flotations. At the time of its $2 billion flotation, the Ruia brothers' success in building Essar Group from a small construction firm into a conglomerate boasting steel, energy, shipping and infrastructure businesses, seemed to bode well for its energy arm. Essar Energy still boasts assets worth $16 billion, according to the company's website, including the giant Vadinar refinery and coal resources in India, seven power plants in India and Canada, and oil and gas blocks around the world. In a sign of confidence, it bought of Royal Dutch Shell PLC's Stanlow oil refinery in the U.K. for $350 million in 2011. But a string of setbacks, including regulatory delays in India, an unexpected tax bill of around $1 billion and weak refining margins, ate into revenue and increased its debts. India's weaker-than-expected economic growth and a currency depreciation also hit profits. "The risks of the business," said the investor who exited the stock "were woefully underestimated." |
Posted at 21/2/2014 09:43 by undervaluedassets In 2010 this company sold a watch to the British Investor for £4.00Now they are offering to buy that watch back for 70p. There is value here and the potential purchaser (the previous seller note) knows it ... why? Cos it is the Same watch - their watch - A watch they know! . In fact in many ways it is not the same watch it is a better watch than 4 years ago. . . .Although not yet profitable the turnover of ESSR has more than doubled in the 4 years since listing. No wonder they want it back for 70p! |
Posted at 18/2/2014 13:05 by undervaluedassets Needs to be stopped. Currently valued less than Marston's brewery. yet assets are worth many multiples of what the price is now. Market cap £865 million NTAV £2 billion. The prospect for power generators in India are ruddy marvellous Murdoch was stopped when he tried to buy BSY at 695p and since he was thwarted BSY shares have climbed appropriately to north of 900p as investors have focussed on the value they were letting slip away. The proposal needs voting down. The Ruias see insane value and are in essence stealing it from the UK investor. They have sold the british investor a watch for £1 and now they want to buy that same watch back for 20p. It is a con. Vote against. |
Posted at 17/2/2014 16:39 by idle dreamer I fully agree with Undervalued Assets that UK investors are to blame. I have held this in my SIPP since last year and I'm well out of the money. But I have to agree that the Indians are doing the sensible thing. If the bid fails but the price rises they do better on the shares they have to sell to increase the free float. If the bid succeeds they pick up the assets for a song. So it's a case of "Heads I win, tails you lose".In their place I would do the same. Damn their eyes! |
Posted at 17/2/2014 08:20 by salpara111 I wonder how this will play out.... Clearly the institutional investors are mad as hell and I imagine they are not going to vote in favour of being mugged at 70p.Given that the majority owner is going to have to sell more shares at the current share price if they dont manage to take it private means they have a real incentive to get an agreed deal, possibly at a price considerably higher than the current one. The share price reaction this morning suggests that a deal wont be done at 70p.....remember that the majority shareholder does not get to vote, only the 22% free float owners get to vote on any takeover. |
Posted at 17/2/2014 07:51 by undervaluedassets Needs to be stopped really.But In a way one feels that investors have mugged themselves. Capital projects run on massive debt and are long term endeavours that take time to come to fruition. National Grid has 45 billion of debt is up 400% and pays a 5 % yield. Cl;early it has been a success for investors. Somehow the fact that big capital projects take time and involve massive debt has been forgotten here and the stock sold and shorted down to frankly rediculous level . The company trades on a fration of NTAV You know that that there is value here otherwise they would not be buying it . The Ruia family are simply taking advantage of Uk investors stupidity. Should be stopped but can it be? |
Posted at 15/2/2014 11:08 by salpara111 Well, I wouldnt be opening any shorts now!Looks like it will be taken private and at a "Modest premium" to the current share price according to press reports today. Minority investors get royally screwed. I will not touch any company that is majority owned by a single investor, particularly if they are Russian but Indian comes a close second. |
Posted at 23/10/2013 14:58 by undervaluedassets Well the investor relations department is approachable at any rate. |
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