Swiss commodity company Trafigura is reportedly planning to offload its stake of 24.5% in Indian oil refining joint venture with Russia’s Rosneft.

The stake in Nayara Energy (formerly known as Essar Oil) is planned to be divested to Italy’s Genera Group, reported Reuters citing people familiar with the commodity trading firm’s plans.

Trafigura and Russian investment group United Capital Partners (UCP) own 49.84% stakes each in Singapore-based Tendril Ventures.

Tendril’s wholly owned subsidiary Kesani holds a 49.13% stake in Nayara Energy while Rosneft’s Singapore unit owns a 49.13% stake. The remaining stake is held by public shareholders.

Nayara CEO Alois Virag was cited by the news agency as saying in a letter to its lenders earlier this month: “We have been informed that Trafigura proposes to sell its shareholding in Tendril to a third party; being Genera Group Holding SPA.”

In a letter seen by Reuters, Virag said: “As a result of the proposed transfer, Trafigura will cease to hold an indirect shareholding in Kesani and hence also in the borrower (Nayara).”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Genera, through Tendril and Kesani, will have a stake of 24.5% in Nayara following the completion of the potential transaction.

According to sources, Genera is seeking permission from the anti-trust regulator Competition Commission of India (CCI) to acquire Trafigura’s stake in Nayara.

Nayara Energy, on the other hand, has written to its local and global lenders, requesting a no-objection certificate.

The lenders include Punjab National Bank, HDFC Bank, State Bank of India, Axis Bank, Canara Bank, Citibank, ICICI Bank, and Barclays.

Nayara Energy owns a refinery, a port and a network of more than 6,000 fuel stations across India.