Essar Oil, a part of Essel Group, has received shareholder approval to buy the 73.99 per cent stake it does not own in Gujarat-based power generating firm Vadinar Power Company Ltd, for up to Rs 2,100 crore ($350 million), as per a stock market disclosure.
A proxy advisory firm had previously advised shareholders to reject the proposal to buy stake in Vadinar Power.
Vadinar Power owns and operates co-generation power plants at Vadinar, Gujarat having an aggregate power generation capacity of 597 Mega Watts (MW) and 1760 tph of steam and meets the entire requirements of steam and power of Essar Oil for its refinery.
Essar Oil had transferred the majority stake in Vadinar Power to Essar Power as part of its CDR process.
Meanwhile, Essar Oil’s shareholders also approved acquisition of 10.25 per cent of cumulative redeemable preference shares (CRPS) of Essar Power from Essar House for up to Rs 1,025 crore.
(Edited by Joby Puthuparampil Johnson)