1. Rosneft, Trafigura and UCP to buy Essar Oil for $12-$13 bln: Sources

Rosneft, Trafigura and UCP to buy Essar Oil for $12-$13 bln: Sources

Rosneft will get 49 percent and the two investors -- Trafigura and UCP -- will hold the remaining 49 percent in equal parts, the sources said, adding that the valuation included about $4.5 billion in assumed debt.

By: | New Delhi | Updated: October 13, 2016 7:01 PM
Rosneft will get 49 percent and the two investors -- Trafigura and UCP -- will hold the remaining 49 percent in equal parts, the sources said, adding that the valuation included about .5 billion in assumed debt.(Reuters) Rosneft will get 49 percent and the two investors — Trafigura and UCP — will hold the remaining 49 percent in equal parts, the sources said, adding that the valuation included about .5 billion in assumed debt.(Reuters)

Russian oil major Rosneft , along with European trader Trafigura and Russian fund UCP, will acquire 98 percent in India’s Essar Oil for about $12-$13 billion including debt, two sources familiar with the deal told Reuters on Thursday. Rosneft will get 49 percent and the two investors — Trafigura and UCP — will hold the remaining 49 percent in equal parts, the sources said, adding that the valuation included about $4.5 billion in assumed debt. Essar Oil operates a 400,000 barrel-per-day oil refinery on India’s west coast and sells fuels through its 2,470 filling stations in India. The company is part of a steel-to-ports conglomerate controlled by the billionaire Ruia brothers that has faced pressure from creditors to reduce borrowing that some analysts estimate at more than $14 billion. One source said the deal will be funded by Russia’s VTB Capital, part of state-controlled bank VTB. The Indian firm is expected to announce the deal on Saturday in the coastal resort of Goa during a visit by President Vladimir Putin, who will meet Indian Prime Minister Narendra Modi for a bilateral summit.

The company is part of a steel-to-ports conglomerate controlled by the billionaire Ruia brothers that has faced pressure from creditors to reduce borrowing that some analysts estimate at more than $14 billion. One source said the deal will be funded by Russia’s VTB Capital, part of state-controlled bank VTB. The Indian firm is expected to announce the deal on Saturday in the coastal resort of Goa during a visit by President Vladimir Putin, who will meet Indian Prime Minister Narendra Modi for a bilateral summit.

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