The Hindu : Business : Essar Shipping’s reorganisation plan

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Thursday, Jan 24, 2008
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Essar Shipping’s reorganisation plan

Special Correspondent

EGM is scheduled for February 23

MUMBAI: Essar Shipping Ltd. (ESL) has announced a plan to explore opportunities for re-organisations / consolidating the business of ESL with certain other businesses of the Essar Group to become an integrated logistics company.

The company is exploring the option of bringing the drilling and exploration business carried on by Essar Oilfields Services Ltd. and several ports and terminal assets under itself.

With interests in dry bulk ports and oil terminals, crude and dry bulk carriers, port-to-plant logistics and oil field services, this re-organisation will enable ESL to provide end-to-end solutions to customers.

Finance Committee

The board of ESL on Wednesday passed a resolution constituting a ‘Re-organisation Committee’ and authorising it to explore the best means to effectuate the re-organisation. In addition, the board has passed an omnibus resolution authorising various capital raising alternatives and to facilitate this process has appointed a ‘Finance Committee’.

The board is also exploring changing the name of the company.

An extraordinary general meeting has been scheduled for February 23.

“The re-organisation / consolidation will aim to align all Essar Group’s logistics infrastructure-related companies under one roof. We believe this will allow us to provide end-to-end solutions to our customers and will provide ESL shareholders a larger, balanced platform for growth. It may also help ESL create value in the ports and terminals business in future and to facilitate organic and inorganic growth in this sector,” said Shashi Ruia, Chairman, Essar Shipping.

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