Essar Oil on Saturday sealed a deal with Russia’s Rosneft, United Capital Partners and Trafigura Group Pte. to sell 98% in its most priced asset, the 20 million tonnes per annum Vadinar refinery and Vadinar Port in Gujarat.
An all-cash deal, the transaction includes Rs.72,800 crore ($10.9 billion) for Essar Oil’s refining and retail assets, and Rs.13,300 crore ($2 billion) for Vadinar port and related infrastructure.
According to one of the sources directly involved in the deal, “the total equity value of the deal stands at about $6.4 billion and $6.6 billion as debt approximately.”
The deal was signed at the Brics (Brazil, Russia, India, China, South Africa) summit in Goa in the presence of Prime Minister Narendra Modi and Russian President Vladimir Putin.
The funds realised through the deal will be used to settle Essar Group debt, said Prashant Ruia, director, Essar Group at the press meet held in Goa
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