Monday, March 8, 2010

Essar 'Plans London Listing'

Essar Group, the Indian company which at the weekend announced plans to buy US coal miner, Trinity Coal, plans to raise $3 billion overseas to fund acquisitions and expand its oil, power and steel businesses, according to sources familiar with the company.

It is thought that the money could be raised via a listing on the London stock exchange. Such a move would make it the biggest overseas listing by an Indian company. According to a report in today’s Financcal times, Essar group has appointed JPMorgan Chase & Co. and Deutsche Bank AG as advisers for the listing.
Essar is bidding for Royal Dutch Shell Plc refineries and is acquiring steel plants and coal and iron ore mines across the world to compete with rivals including ArcelorMittal and analysts see the London listing as vital to that end.

It is thought that the Bombay-listed Esaar Oil – itself worth $3.9 billion – could also be listed in London.

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