BackSebi seeks fresh clarifications on Vedanta-Cairn deal
Sebi seeks fresh clarifications on Vedanta-Cairn deal
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Mumbai: The Securities and Exchange Board of India (Sebi) has sought fresh clarifications on the proposed $9.6 billion Vedanta-Cairn deal, which has already been awaiting clearance from the market regulator for about six months now.
Vedanta group had sought Sebi’s approval in August 2010 for an ₹ 13,160 crore open offer for purchase of up to 20% stake from the public as part of the overall deal.
According to sources, the market regulator has asked for more clarifications from the merchant banker involved in the planned Cairn-Vedanta deal. It could not be ascertained as to what are the new clarifications being sought by Sebi.
Earlier, Sebi clearance was sought by Vedanta group firm Sesa Goa through its merchant banker JM Financial.
As part of the deal announced in August 2010, Vedanta group agreed to acquire up to 60% stake in Cairn India from its Edinburgh-based promoter Cairn Energy and public shareholders.
This included an open offer for 20% stake purchase from the public at a price of ₹ 355 per share, totalling ₹ 13,160 crore.
The open offer, which was initially scheduled to begin on 11 October last year and close on 30 October, has been stuck for a long time given the delay in Sebi clearance.
Earlier, the regulator had asked for more details on issues like open offer price and necessary clearance to the deal from the Petroleum Ministry and PSU energy giant ONGC.
Sebi had also sought clarifications on various media reports about the deal.
Cairn India is a three-way joint venture with Cairn, domestic oil and gas major ONGC and Petronas of Malaysia.
Presently, the Edinburgh-based Cairn Energy holds a 62.37% stake in Cairn India.
Last week, oil secretary S Sundareshan had said the government is likely to take a decision on the Cairn-Vedanta deal in the next few weeks and that the decision would be taken on merits.
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