UK's Cairn Energy Plc said on Thursday that it has extended the deadline for completion of the sale of a majority stake in its Cairn India Ltd unit to Vedanta Resources by more than a month to May 20.
Earlier, Cairn Energy's $9.6-billion (Rs 43,200-crore) deal to sell a 40-51% stake in Cairn India and the subsequent open offer by Vedanta group (through Sesa Goa) for the acquisition of an additional 20% interest was to be completed by April 15.
"Cairn and Vedanta have extended the long stop date in the sale agreement, by which all conditions must be completed or waived (where permitted) to May 20 in order to accommodate the completion of the open offer," Cairn Energy said in a statement.
The statement also confirmed that Vedanta had received clearance from the Securities and Exchange Board of India (SEBI) to commence an open offer for up to 20% of Cairn India shares. The open offer will be made by Vedanta's subsidiary Sesa Goa and will open for acceptance between April 11 and 30.
More importantly, Cairn said that SEBI has made changes in its deal with Vedanta and has struck down a call-and-put option involving conditional transactions in the future.
A call option is one where the buyer gets the right but no obligation to buy shares at a particular price. A put option is one where the buyer has the right but no obligation to sell the shares at a particular price.
Cairn Energy said that the company "looks forward to the successful completion of the transaction after obtaining all the necessary Government of India approvals and consents."