Tuesday, June 16, 2015

Essar Oil Surges to Highest Price in 4 Years on Rosneft Report

Essar Oil Ltd., India’s second-biggest non-state oil refiner, jumped to the highest level in more than four years in Mumbai following reports OAO Rosneft may acquire a 50 percent stake.

The shares climbed 4.7 percent to 146.25 rupees, the highest since November 2010. The stock surged 42 percent last week, the most since the period ended April 2009.

 The founders of Essar Oil are in discussions to sell up to 50 percent in the 400,000-barrels-per-day refinery in the western state of Gujarat, BTVI reported Monday, citing people it didn’t identify.

Billionaire brothers Shashikant and Ravikant Ruia are set to sell 49 percent in Essar Oil to state-run Rosneft, which pumps about 40 percent of Russia’s oil, for about 105 billion rupees ($1.64 billion), Business Standard newspaper reported Monday, citing a banker it didn’t identify. The deal may be announced as early as Tuesday, the newspaper reported.

“It is not our policy to comment on market speculations,” Essar Oil said in an e-mailed statement. In December, Essar Oil signed key terms with Rosneft for buying 10 million metric tons of crude oil annually for 10 years starting as early as this year.

bloomberg.com

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