SEBI likely to clear Cairn India's $9.6 billion asset sale to Vedanta
14 March 2011
The Securities and Exchange Board of India (SEBI) has issued final observations on Vedanta Resources $9.6 billion deal to acquire the oil assets of Cairn India.
Once SEBI clears the deal, the Anil Agarwal-led Vedanta Resources will have to wait for cabinet approval since it involves government-run Oil and Natural Gas Corporation (ONGC) as well.
The deal between the two UK-based companies, announced in August 2010, has since been waiting for approvals from the market regulator and the government.
The government is yet to approve the deal, wherein the British energy giant Cairn Energy agreed to sell its majority stake in Cairn India to Vedanta group.
Vedanta resources, which, on 17 August 2010, announced the deal to acquire up to 51 per cent stake in Cairn India, had sought SEBI's approval for the mandatory open offer to acquire an additional 20 per cent from the public holding in Cairn India.
Vedanta had offered to acquire up to 20 per cent stake in Cairn India from public shareholders at Rs355 per share, for a total of Rs13,631 crore.