The Hindu Business Line : SAT vacates stay on Essar Steel delisting notice

Mumbai, Dec. 12 The Securities Appellate Tribunal Mumbai on Wednesday vacated the interim stay granted on notice issued by exchanges pertaining to the delisting of securities in Essar Steel.

The Tribunal had earlier granted the stay order on an ex-parte basis. The Tribunal vacated the stay order and permitted the Stock Exchanges to implement the said notice in accordance with law.

With today’s order, the trading in the shares will be discontinued from the closing hours of December 14 and the shares delisted on December 24, 2007.

Essar Steel said the Tribunal order vindicates the company’s stand that Essar Steel has completed the delisting formalities pursuant to the SEBI (Delisting of Securities) Guidelines 2003 in an open and transparent manner.

The company and the promoters had complied with all the requisite laws and regulation for delisting of equity shares. Accordingly, the BSE and NSE have taken steps for delisting of shares.

The Reverse Book Building Process and other statutory formalities have been fully completed and payments to shareholders made. The exit option for shareholders, who have not tendered the shares, will be kept open at the rate of Rs 48 per share (at a premium of about 25 per cent over the floor price of Rs 38), being the exit price determined to the remaining public shareholders for a period of six months from the date of delisting.

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