Rosneft buying into India
India’s Essar Oil (ticker: ESSAROIL) plans to sell a 50% stake, minus 1 share, to Russia’s oil giant Rosneft (ticker RNFTF) for $7-$8 billion, according to a report from the Economic Times. The deal would give Rosneft more inroads to Asia’s third-largest economy and reduce India’s reliance on Iranian crude oil.
Another source told ET that Rosneft was also interested in acquiring an equity stake in Essar’s flagship Vadinar refinery. The refinery accounts for the majority of the company’s valuation. To minimize cash payout, Rosneft may pay partly in cash and partly in crude supply at a discounted price, a source familiar with the deal said.
When contacted for details, Essar said it does not comment on market speculation. Rosneft did not respond to the question at all.
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