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Offer price for Cairn India final: Vedanta

Last Updated 11 October 2010, 15:07 IST

Its open offer itself failed to take off in the absence of clearance from stock market regulator Sebi.

Vedanta is paying up to US$8.48 billion for 40-51 per cent stake in Cairn India that operates the country’s largest oilfields, and its group firm Sesa Goa was to make an open offer for an additional 20 per cent stake at Rs 355 a share to minority shareholders of the target firm.

The open offer price is Rs 50 less than what Vedanta is offering to Cairn India’s parent Cairn Energy Plc. “We have given a very lucrative offer and that offer we stand by,” Vedanta Chairman Anil Agarwal told reporters here. “The price if final.”

The Rs 50 per share premium was “very important” to Vedanta as “we wanted Cairn India to have exclusivity (in operations) in India and neighbouring countries,” he said.
“Non-compete fee is very important for us because we do not want Cairn Energy Plc to work in our area,” he said.

Cairn Energy recently formed a two-member panel to safeguard the interests of its minority shareholders, after analysts raised concern about the difference in offer price.
Vedanta group firm Sesa Goa could not go ahead with the open offer, slated for today, for want of approval from regulator Sebi.

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(Published 11 October 2010, 15:07 IST)

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