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.