Mumbai: The market regulator Sebi said on Monday it had issued “final observations” on Vedanta Resources’ open offer for Cairn India, but a source with direct knowledge said the offer had not yet been approved.
Cairn Energy agreed six months ago to sell up to 51% stake in its Indian unit Cairn India to Vedanta in a deal valued at up to $9.6 billion, which had been delayed as the government looked into issues of royalty payments.
The government has not approved the deal yet, and the closure of the deal also needs the approval from the Securities and Exchange Board of India (Sebi) for launching an open offer to buy stake in Cairn India as per the Indian rules.
In a notification on Monday, the Sebi said it had issued final observations on the open offer without giving any details. The source, however, said that issuing final observations did not mean the regulator had approved the offer.
“The open offer is yet to be cleared,” the source told Reuters.
State-controlled explorer Oil and Natural Gas Corp (ONGC) owns a 30% stake in some of the Cairn India assets up for sale but pays 100% of the royalties on those assets to the government, an issue that has delayed the deal.