Vedanta Group on Wednesday said that it will go ahead with its open offer, a company official said. This is irrespective of the fact that the deal has been referred to a Group of Ministers, which could delay the completion of the transaction.
The Group company Sesa Goa has said that it will come out with open offer by April 11 to acquire up to a 20 per cent additional stake in Cairn India at Rs 355 per share.
In fact, Sesa Goa has issued an advertisement in a newspaper on Wednesday relating to the offer following conditional clearance from SEBI.
According to the Cairn Energy-Vedanta Resources deal, Sesa Goa would acquire a 40 per cent stake from Cairn Energy Plc for $6.65 billion and make an open for to acquire another 20 per cent from Cairn India's other stockholders. In the public offer announced on August 17, Sesa Goa had offered to acquire up to a 20 per cent stake from public shareholders at a price of Rs 355 per share.
“The offer letters will go but allotment would be subject to government nod. Royalty payments to ONGC is another factor that needs to be considered,” says Ms Madhumita Ghosh, Vice-President, Research, Unicon Financial Intermediaries