Vedanta Group firm Sesa Goa today said it will respond by this week to the latest Sebi query on making open offer to acquire up to 20 per cent stake in Cairn, even as it awaits clearances from the market regulator to launch its buy back programme.
"We will reply to Sebi's latest query this week. We are still awaiting Sebi's approval to launch the open offer," Sesa Goa Managing Director P K Mukherjee told PTI.
London-listed Vedanta Resources is acquiring 40-51 per cent stake of UK's Cairn Energy Plc in the firm that owns the nation's largest onland oilfield for up to $9.6 billion.
As part of the acquisition, Vedanta's group company Sesa Goa had filed papers on August 17 for making an open offer for additional 20 per cent shares of Cairn India.
The offer was to open on October 11, but in the absence of Sebi approval it has been delayed.
Mukherjee, however, had earlier exuded confidence that the company would be able to complete the open offer transaction by early next year.
Cairn Energy Plc had earlier this month secured the approval of shareholders for sale of majority stake in its Indian arm to Vedanta Resources but the closure of the deal depends on certain conditions, including the open offer from Sesa Goa.
The deal was also conditional upon shareholders of Cairn Energy Plc, which holds 62.38 per cent stake in Cairn India, and Vedanta Resources passing a resolution to approve the transaction on or before October 30.
More importantly, the deal requires Indian government's consent.
Industry sources said the market regulator may be waiting for the government to give its no-objection to the sale.
Oil Secretary S Sundareshan had a few weeks ago written to the Sebi chairman stating that the deal was contingent upon government approval, which has not yet been accorded.
The Supreme Court had earlier refused to restrain Vedanta Resources' subsidiary Sesa Goa from launching the open offer.
Sesa Goa is offering a price of Rs 355 per share, Rs 50 less than what Vedanta is paying Cairn Energy for the majority stake. The Rs 50 a share is the fee that Cairn Energy is charging from Vedanta for not competing with it in India, Sri Lanka and Bhutan for next three years.
