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Journalism of Courage
Essar Group company Essar Shipping Ports & Logistics Ltd (ESPLL) announced that it would be demerged into two firms– Essar Ports and Essar Shipping.
ESPLL, which is a part of Essar Group today held its Committee of Directors (Demerger Committee) meeting and announced the completion of the demerger process,a company statement said.
Post demerger,the present company will be split into two entities Essar Ports Ltd and Essar Shipping Ltd,it said.
The current company – ESPLL – will become Essar Ports Ltd,the Shipping,Logistics and Oilfield businesses will be spun off into a separate company called “Essar Shipping Ltd”.
The share capital will be split in a ratio of 2:1. For every three shares held of ESPLL,shareholders will get two shares of Essar Ports Ltd and one share of Essar Shipping Ltd.
Essar Shipping is expected to get listed separately around the end of June after completing the relevant formalities.
As per the new management structure,Rajiv Agarwal will be the Managing Director of Essar Ports Limited. K K Sinha will be the CEO and Shailesh Sawa will be the CFO of Essar Ports Limited.
A R Ramakrishnan will be the Managing Director of Essar Shipping Limited once it is listed.
The Ports company has a capacity of 88 (million tones per annum) MTPA of current capacity,with a target to reach 158 MTPA by 2013.
The Shipping business has a diversified fleet of 26 vessels and the company has placed orders for 12 new ships,which are expected to join the fleet over the next 24 months.
