The mandatory open offer by London-based Vedanta Resources for an additional 20 per cent stake in Cairn India will begin on October 11. The Rs 13,631-crore offer is part of the $9.6 billion takeover deal of Cairn India and is being made by Vedanta through its group company, Sesa Goa Ltd.
Sesa Goa will offer Rs 355 per share to Cairn India’s shareholders. The company’s board of directors had approved the additional acquisition in Cairn India yesterday.
Under the takeover deal, the Vedanta Group will acquire 51-60 per cent in Cairn India through purchase of Cairn Energy Plc’s stake and through the open offer. “If there is insufficient takeup in the open offer, Sesa Goa will acquire the balance as part of the Vedanta Group’s acquisition of 51-60 per cent stake in Cairn India,” Sesa Goa had said in a filing to the Bombay Stock Exchange (BSE) yesterday.
The sale price agreed upon is Rs 405 per share, including Rs 50 as non-compete fees.
Sesa Goa’s share price at the BSE today closed down 0.8 per cent, at Rs 319.7. Cairn India’s share closed at Rs 338.6, up 1.7 per cent as compared to yesterday’s close.