Essar group may list more businesses in London
Tuesday, 26 April 2011, 07:35 IST   |    1 Comments
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London: After the successful float of Essar Energy in LSE last year, Indian conglomerate Essar group has said it may look at listing its other businesses here. Essar group chief executive Prashant Ruia said that the company may look at a UK listing for other parts of the business, including its ports and shipping arms. But no final decision is likely until next year. When contacted, an Essar spokesperson in Mumbai, said, "...there are no current plans for further IPOs of Essar Group businesses in London, although we have been encouraged by the positive response from investors to the Essar Energy listing." Talking to the newspaper a few weeks ahead of the first anniversary of the USD 2.5 billion (1.5 billion pound) London float of Essar Energy, Ruia said, "Last year, when we looked at doing this, it was very much focused on doing it as a single experience... but we have been very happy over the past year. "We have other businesses which are listed in Bombay (the Bombay Stock Exchange), the shipping business for example. I am sure we will look," he said. Asked whether the group may float these businesses here, he said, "Yes, we are open to it." But nothing is imminent and that no final decision would be taken until next year. Essar Ports has an annual capacity of 76 million tonnes and handles 40 million tonnes of cargo a year, mainly crude oil and iron ore. It is already India's second-largest privately owned ports group in terms of volumes but is on track to double capacity to 158 million tonnes in the next two years. The group is investing USD 1.1 billion to acquire 12 new vessels and jack up rigs for its shipping operation. Separately, Ruia said Essar Energy, the FTSE 100 listed company in which the Ruias retain nearly 77 per cent, was examining acquisitions to bolster its access to oil and coal for the Indian market. "We are looking at international resources in coal, oil and gas in Africa, Indonesia and Australia. "With revenues of USD 15 billion last year, Essar has interests in businesses from ports and shipping to outsourcing." He said other divisions could also be considered for a London listing, although he declined to comment on the specifics.
Source: PTI
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