Open offer for Cairn opens on 11 October
NRI billionaire Anil Agrawal-led Vedanta Group said its open offer for 20 per cent stake in Cairn India will begin on 11 October, as part of its US $9.6 billion takeover deal of the country’s fourth largest oil explorer.
Vedanta has made the open offer through its group company Sesa Goa. The Rs 13,631.48-crore offer opens on 11October and would close on 30 October, the Vedanta Group said in a public announcement. Sesa Goa is offering a price of Rs 355 per equity to the public shareholders of Cairn India.
“It is a strategic investment for Sesa Goa,” Sesa Goa MD PK Mukherjee said during an analyst conference call. The offer is part of a US $9.6 billion deal, entered between Vedanta and Cairn Energy. Under the deal, London-based Vedanta group plans to acquire 51-60 per cent stake in Cairn India through purchase of Cairn Energy Plc’s stake and through open offer.
The sale price has been agreed at Rs 405 per share which includes Rs 50 apiece as non-compete fees. Thus, shareholders will be paid Rs 355 per share, while Cairn Energy will be paid Rs 405 apiece.
“The share acquisition will be made mainly from our cash reserves. Right now, we have US $2 billion for the purpose. By the last quarter of the current fiscal, when we think the share purchase will be completed, we can have entire US $3 billion for buying the shares,” Mukherjee added.
JM Financial is the sole manager to the offer and it made the public announcement on the behalf of Vedanta Resources Plc and THL Aluminium Ltd along with Sesa Goa, which is acting as a person acting in concert with the acquirers. Agencies
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