Essar to Raise Up to $3 Billion in IPO
India's Essar Group has revealed its to raise nearly $2.5 billion to $3.0 billion by listing a unit on the London Stock Exchange, a person familiar with the matter claimed Monday, as the steel-to-telecommunications conglomerate look for funds in a bid to widen its power and refining businesses.
Essar look forward to conglomerate its operations in the power, oil refining, and exploration and production segments into a single body and then list it, the person told Dow Jones Newswire. The person said he estimates the combined entity's valuation to be about $12 billion.
"A final decision on the listing is likely to be taken in six to eight weeks", he further added.
Essar, which reportedly possess $15 billion in annual revenue, said last week that it decided to buy U. S.-based Trinity Coal for $600 million.
The deal will land the total conglomerate 200 million tons in coal reserves in the Central Appalachian region, dividing equally between metallurgical coals used in steel production and thermal coal used to fuel power plants.
In addition, the group is revealed to be in talks for some time in a view to takeover Royal Dutch Shell PLC's Stanlow refinery in the U. K. and the Anglo-Dutch company's Heide and Harburg plants in Germany.
