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FTSE keeps Essar Energy's minimum float deadline suspended pending bid outcome
March 17, 2014 / 6:17 PM / 4 years ago

FTSE keeps Essar Energy's minimum float deadline suspended pending bid outcome

March 17 (Reuters) - FTSE said on Monday a deadline for Essar Energy Plc to meet the minimum free-float rule would remain suspended pending the outcome of a buyout offer from the company’s largest shareholder.

Essar Global Fund, which holds 78 percent in Essar Energy, on Friday went ahead with its indicative offer of 70 pence per share for the stake it did not already own in the London-listed oil and gas company.

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.

Essar Global Fund had earlier planned to sell Essar Energy shares to dilute its stake to meet the new listing norms.

Essar Energy’s shares closed down 3.3 percent at 64.35 pence on the London Stock Exchange.

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