Farallon Capital will pick up 26 per cent stake in the firm, while lenders led by State Bank of India will convert part of their loans to get a 34 per cent stake in the steel maker. The Ruias will hold the first right of refusal on the shares held by banks and Farallon, and may even look at listing the shares to give an exit option to new shareholders, said a banker.
An official spokesperson of Essar Steel declined to comment.
Private equity firm Farallon Capitals role would be limited to being a financial investor and it would invest Rs 1,700 crore in the firm by way of fresh capital. The Ruias, who currently hold 100 per cent stake in the unlisted company, will see their stake falling to 40 per c…
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