Cairn open offer delayed as Sebi is yet to take a call

Originally, the offer was to open on October 11 and close on October30.

The Vedanta Resources and Sesa Goa open offer to Cairn India shareholders is delayed, as the Securities and Exchange Board of India (Sebi) is yet to clear it.

The manager of the open offer, JM Financial, was going to issue a corrigendum through a public notice, persons familiar with the matter said. The new timeline for the open offer would depend on Sebi’s approval.

Originally, the open offer was to open on October 11 and close on October 30. However, Sebi is awaiting the Indian government decision on the Cairn-Vedanta deal. The ministry of petroleum and natural gas has referred the deal to the law ministry, after state-run Oil and Natural Gas Commission (ONGC), Cairn India’s partner in three oil producing fields, sought legal opinion of the Solicitor General of India.

On August 16, billionaire Anil Agarwal’s Vedanta Group said it would buy 51-60 per cent stake in Cairn India for $8.5-9.6 billion in cash. According to the deal, Vedanta proposed to acquire a minimum of 40 per cent Cairn India shares from its promoter, Cairn Energy Plc, at Rs 405 a share, including a non-compete fee of Rs 50 a share.

Vedanta Resources, along with group company Sesa Goa, had announced an open offer to buy another 20 per cent stake, or 383.99 million shares, of Cairn India at Rs 355 a share from public shareholders.

Sebi norms require an acquirer of more than 15 per cent stake in a company to make an open offer to buy 20 per cent more from public shareholders.