Government seeks SEBI views on Cairn-Vedanta deal
07 September 2010
The ministry of petroleum has written to the Securities and Exchange Board of India (SEBI) seeking the market regulator's views on Cairn Energy's $8.48 billion deal to sell a 51 per cent stake in its India venture to metals and mining firm Vedanta Resources.
The deal between Cairn and Vedanta, both UK-based, does not yet have the oil ministry's approval, a condition contingent for the deal to consummate.
The petroleum ministry has also written to Cairn Energy asking it to make formal applications for approval of transfer of ownership in each of the 10 properties where Cairn India holds stake.
Cairn holds a majority 70 per cent stake in the Rajasthan oil fields while state-run Oil and Natural Gas Commission holds 30 per cent equity stake.
Cairn holds equity stake in various other oil and gas asserts in India through 31 subsidiaries - all of them incorporated outside the country.
Also, Cairn has failed to mention in its documents the condition that the deal with Vedanta requires approval from the Government of India, it was pointed out.