Essar Oil to consider delisting from local exchanges

MUMBAI (Reuters) - Essar Oil Ltd said its board would meet on Monday to consider delisting the company from the Bombay Stock Exchange Ltd and National Stock Exchange of India Ltd.

This follows the delisting of its parent Essar Energy Plc from the London Stock Exchange this month.

Essar Oil, a unit of India's diversified Essar Group, would be delisted after founders buy the shares owned by the company's public shareholders, it said a statement on Friday.

The public shareholders own 27.5 percent of Essar Oil, the statement said.

The delisting proposal is part of plans to take the energy business of Essar Energy Plc private to provide increased financial flexibility to support its business needs, it said.

Essar Energy Plc shares ceased trading on the London Stock Exchange on June 10. The process of creating a private company wholly-owned by Essar Global Fund Limited (EGFL) is set to be completed by next month.

(Reporting by Sumeet Chatterjee. Editing by Jane Merriman)