SC issues notice on plea to stay Vedanta’s public offer

SC issues notice on plea to stay Vedanta’s public offer

New Delhi, 6 September The Supreme Court today issued a notice on a petition seeking to stay implementation of public offer made by London-based Vedanta Resources to buy 20% additional stake in iron ore exporting firm Sesa Goa Ltd.

A bench headed by Justice B N Agrawal sought response from the Centre, Bombay Stock Exchange, market regulator SEBI, Mitsui and its UK-based subsidiary Finsider International as well as Sesa Goa on a petition filed by one Harinarayan G Bajaj, a BSE broker. The apex court also accepted Bajaj’s plea to implead Vedanta as a party in the matter.

SEBI had recently given its approval to Vedanta’s open offer to buy additional stake from the company’s shareholders.

Earlier, the apex court had sought response on a plea challenging the acquisition of controlling stake in the iron ore mining firm Sesa Goa.

Vedanta had early this year acquired Mitsui’s 51% stake in Sesa Goa for $98, at a price of 2,036 per share. To clinch the deal, Vedanta acquired 100% of Finsider, which owns Mitsui’s stake in Sesa Goa.

While challenging the grant of approval by SEBI, Bajaj’s counsel Ashok Desai and Mahesh Agarwal, said as per the Indian takeover code, Vedanta was supposed to make an open offer to public shareholders.

“Sale is perfected only when public offer is made. Vedanta should pay compensation to the shareholders," Desai added.

In its application, Bajaj also stated that the offer was scheduled to open on 31 August and close on 19 September.