Sebi go ahead for Cairn takeover: Vedanta chief | business | Hindustan Times
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Sebi go ahead for Cairn takeover: Vedanta chief

business Updated: Apr 05, 2011 16:42 IST

UK-based Vedanta Group on Tuesday said it has received market regulator Sebi's nod for a USD 9.6 billion deal to acquire a 51 % stake in Cairn India and will launch an open offer soon.

"We have already received Sebi's approval for an open offer. The issue will open very soon. Within the next one to two days, we will send out the mails regarding this to all concerned," Vedanta Group Chairman Anil Agarwal told reporters.

The Vedanta chief also appeared confident that the deal to acquire a majority stake in Cairn India, promoted by Edinburgh-based Cairn Energy Plc, would soon receive the approval of the government.

"We have a deadline of April 15 and I believe the government will give its approval before that... The royalty issue has to sorted out with the government and the ONGC. We can... take up that issue later," he said.

The deal, which has been hanging fire since November, 2010, is likely to be considered for final approval by the Union Cabinet at its meeting in the national capital on Wednesday.

As per the Takeover Code of the Securities and Exchange Board of India (SEBI), the acquirer is required to come out with an open offer to give an exit option to existing shareholders.