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Vedanta's open offer for Cairn India opens on Oct 11
PTI
Last Updated IST

Vedanta has made the open offer through its group company Sesa Goa. The Rs 13,631.48-crore offer opens on October 11 and would close on October 30, the Vedanta Group said in a public announcement.

Sesa Goa is offering a price of Rs 355 per equity to the public shareholders of Cairn India, the owner of the India's largest onland oilfield.
"It is a strategic investment for Sesa Goa," Sesa Goa MD PK Mukherjee said during an analyst conference call yesterday.

The offer is the part of a USD 9.6 billion deal, entered between Vedanta and Cairn Energy. Under the deal, London-based Vedanta group plans to acquire 51-60 per cent stake in Cairn India through purchase of Cairn Energy Plc's stake and through open offer.
The sale price has been agreed at Rs 405 per share which includes Rs 50 apiece as non-compete fees. Thus, shareholders will be paid Rs 355 per share, while Cairn Energy will be paid Rs 405 apiece.

"The share acquisition will be made mainly from our cash reserves. Right now, we have USD 2 billion for the purpose. By the last quarter of the current fiscal, when we think the share purchase will be completed, we can have entire USD 3 billion for buying the shares," Mukherjee added.

JM Financial is the sole manager to the offer and it made the public announcement on the behalf of Vedanta Resources Plc and THL Aluminium Ltd along with Sesa Goa, which is acting as a person acting in concert with the acquirers.
Shares of Sesa Goa were quoting at Rs 320.8, down by 0.54 per cent in the afternoon trade on BSE, while Cairn India was trading at Rs 338.40, up 1.67 per cent.

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(Published 17 August 2010, 15:28 IST)