Vedanta offers to acquire 20 per cent in Cairn India for $3 billion

Anil Agrawal-led Vedanta Group has offered to acquire 20 per cent of the issued share capital of Cairn India for around Rs13,631 crore (about $3 billion) in an open offer.

The UK-listed Vedanta Resources is making the acquisition through its India mining arm Sesa Goa Ltd offer ahead of its proposed $9.5 billion acquisition of Cairn's oil and gas assets in India.

The offer will open on 11 October and close on 30 October, the Vedanta Group said in a public announcement.

Vedanta has agreed on a share price of Rs405 apiece, which includes Rs50 a share non-compete fees. Other shareholders of Cairn will be paid Rs355 per share, while Cairn Energy will be paid Rs405 a share.

If there is insufficient take up in the open offer, Sesa Goa will acquire the balance as part of the Vedanta Group's acquisition of a 51-60 per cent stake in Cairn India. The total
cash consideration for the shares to be acquired is $3billion, the company announced today.

Sesa Goa said the stake acquisition in a world-class asset with significant growth potential would give superior returns with added security.