Mumbai, 21st August 2017 – On Friday 18th August 2017, an investment consortium comprised of international commodity trading firm Trafigura and private investment group UCP Investment Group (UCP) has completed the acquisition of a 49 percent stake in Mumbai-based Essar Oil Limited (EOL) from Essar Energy Holdings Limited and Oil BidCo (Mauritius) Limited.
The acquisition includes the Vadinar oil refinery and world-class storage and import/export facilities, as well as a domestic retail network business consisting of over 3,500 retail service stations. The 20Mtpa super-refinery, with a Nelson complexity index of 11.8, is located on strategic shipping routes to demand centres in the Far East and close to Middle East sources of production. India is one of the world's most important sources of growth in energy demand and the deregulation of pricing of the Indian retail market is expected to bring potential growth opportunities for EOL’s retail network.
Jeremy Weir, Chief Executive Officer of Trafigura commented: “Essar Oil will now be able to take advantage of the strengths of its international investors to further develop and enhance value to this world class asset. Our stake in Essar Oil also complements Trafigura’s growing presence in India at a time when the country’s economic outlook is positive.”
Ilya Sherbovich, Managing Partner of UCP Investment Group, commented: "Achieving a successful closing of the deal with a group of strong partners represents an important milestone for Essar Oil. We are confident that together with all the new shareholders - recognised leaders in their industries, we will oversee the growth potential of Essar Oil to increase the long-term value of the company."
A new Board of Directors for EOL will be formed straight away consisting of representatives from each shareholder, from EOL’s management team and independent directors.
SBICAP acted advisor to the investment consortium for achieving the closure of the transaction.
Suman Das Sarma - Tel: +91 9820051946 or Email: email@example.com
Krishnamoorthy R - Tel: +91 9967067542 or Email: firstname.lastname@example.org
Trafigura’s Press Office: +41 (0) 22 592 4528 or email@example.com
UCP Investment Group press-office: +7 (916) 907 50 79 or firstname.lastname@example.org
Notes to editors
Founded in 1993, Trafigura is one of the largest physical commodities trading groups in the world. Trafigura sources, stores, transports and delivers a range of raw materials (including oil and refined products and metals and minerals) to clients around the world. The trading business is supported by industrial and financial assets, including 49.6 percent owned global oil products storage and distribution company Puma Energy; global terminals, warehousing and logistics operator Impala Terminals; Trafigura's Mining Group; 50 percent owned DT Group which specialises in logistics and trading; and Galena Asset Management. The Company is owned by over 600 of its almost 5,300 employees who work in offices in 36 countries around the world. Trafigura has achieved substantial growth over the last ten years, growing turnover from USD12 billion in 2003 to USD98.1 billion in 2016. The Group has been connecting its customers to the global economy for more than two decades, growing prosperity by advancing trade. www.trafigura.com
UCP Investment Group
UCP Investment Group (UCP) is an independent, private investment group established in 2006 to manage the assets of its partners and co-investors. UCP invests in high-potential private companies and in liquid securities traded on domestic and international markets. UCP has a successful investment track record in the following industries: FMCG and retail, financial infrastructure and services, internet technologies, high-tech materials production, heavy machinery, oil & gas and petrochemicals. www.ucpfund.com