Essar Global extends tender offer for Essar Energy 4.25% convertibles

By Angela McDaniels

Tacoma, Wash., May 9 - Essar Global Fund Ltd. subsidiary Energy Bidco Holdings Ltd. extended its tender offer for the $550 million 4.25% convertible bonds due 2016 guaranteed by Essar Energy plc to 8 a.m. ET on May 23 from 8 a.m. ET on May 9, according to a company news release.

As of 10 a.m. ET on May 9, Energy Bidco had received tenders for 18.1 million, or 3.29%, of the convertibles.

The company is offering 80% of par plus accrued interest for the convertibles. According to Energy Bidco, this is an 11% premium over the bonds' 72.21 closing price on Feb. 13, the day before the offer began.

Energy Bidco is also tendering for the 22.01% of Essar Energy's shares that it does not already own. The shares it has received in the tender offer so far and the shares it already owns add up to 86.28% of the company's shares. Energy Bidco said it plans to delist the shares from the London Stock Exchange, with the delisting expected to take effect June 10.

All of the conditions to the tender offers have been waived and are being treated as satisfied.

The tender agent is Bank of New York Mellon, London Branch (Ctsingaporegcs@bnymellon.com). The information agent is Georgeson (877 797-1153 or, for banks and brokers, 800 223-2064).

Essar is a London-based energy company that does business mostly in India.

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