Feb 19 FTSE on Wednesday said it suspended the
deadline for London-listed Essar Energy to meet a
minimum free float rule pending the result of a potential offer
by Essar Global Fund Ltd to buy out the remaining stake in the
The oil and gas conglomerate's independent committee said
that with FTSE's free float deadline suspension, shareholders
such as tracker funds will not be required to sell their
holdings prior to the outcome of the bid.
Essar Energy currently has a free float under 25 percent and
was therefore subject to FTSE's requirement to raise it to at
least greater than 25 percent by March 4 in order to meet the
eligibility requirements to remain in the FTSE UK Index Series.
According to FTSE's new rules for listing which came into
effect in 2012, companies have to maintain a minimum 25 percent
from the earlier threshold of 15 percent of shares that can be
freely traded to be able to join the FTSE UK index series.
FTSE said Essar Energy's future eligibility for inclusion in
the FTSE UK Index Series will be made after the outcome of the
proposed offer is announced.
Essar Global Fund in November said it planned to sell shares
to dilute its 78.02 percent stake in Essar Energy so the company
could meet UK listing requirements.
However, in a reversal, the fund announced its plan on
Friday to buy the remaining 22 percent in the company. On
Sunday, it made an offer of 70 pence per share over Thursday's
closing price for Essar Energy, which is controlled by India's
billionaire Ruia brothers.
Minority shareholders Standard Life and Henderson Global
Investors criticised the move calling it "cynical opportunism."