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ESSARPORTS - Essar Ports News Story

₹129.3 0.0  0.0%

Last Trade - 19/11/15

Sector
Industrials
Size
Micro Cap
Market Cap £n/a
Enterprise Value £n/a
Revenue £n/a
Position in Universe th / 2996

BREAKINGVIEWS-StanChart shakeup turns screws on India's tycoons

Thu 5th November, 2015 3:00am
(The author is a Reuters Breakingviews columnist. The opinions expressed are her own.) By Una Galani HONG KONG, Nov 5 (Reuters Breakingviews) - The lender plans to offload some of its share of loans worth $3.5 bln to Essar Global. The steel-to-ports conglomerate backed by the Ruia brothers is one of India's most indebted. It's an overdue warning to the country's tycoons that suppliers of cheap credit are becoming rare. Full view will be published shortly. <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ SIGN UP FOR BREAKINGVIEWS EMAIL ALERTS: www.breakingviews.com/TOPNewsSubscription ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^> CONTEXT NEWS - Standard Chartered and other creditors are looking to sell off some of the loans made to Essar Global worth around $3.5 billion, according to a person familiar with the situation. - The emerging market lender, along with ICICI Bank and Axis Bank, has approached Russia's VTB Group about buying loans to the holding company of the ports-to-steel conglomerate, which is controlled by the Ruia brothers, Bloomberg reported citing unnamed sources. - Standard Chartered said it cannot comment on individual client exposures but that the external environment is "quite challenging" and that it was "seeing stress across the banking sector". - On Oct. 27 Essar Ports set a floor price of 93.7 rupees per share ($1.43) to delist its shares from the National Stock Exchange of India. The offer closes on Nov. 5 and the share price is currently 120 rupees. - Essar Ports has a $785 million market capitalization and is 74.31 percent owned by Essar Group, according to Eikon. - Essar Energy was delisted from the London stock exchange last year after Essar Global bought out minority shareholders. - Credit Suisse estimates the Essar group of companies has gross debt of around 1 trillion rupees ($15.2 billion). That excludes debt held at the group's holding company. - Bloomberg: Standard Chartered said seeking to offload chunk of Essar loans: http://bloom.bg/1WxgCin RELATED COLUMN Long cold Winters ID:nL3N12Y33V - For previous columns by the author, Reuters customers can click on GALANI/ (Editing by Peter Thal Larsen and Katrina Hamlin; https://twitter.com/ugalani) ((una.galani@thomsonreuters.com Reuters messaging: una.galani.thomsonreuters.com@reuters.net)) Keywords: STANCHART INDIA/BREAKINGVIEWS
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