The Securities and Exchange Board of India (SEBI) is yet to issue a formal clearance to the $9.6-billion (Rs 43,200 crore) takeover of Cairn India by Anil Agarwal-Vedanta Resources and has sought some more clarifications from the merchant bankers involved in Vedanta’s open offer to Cairn shareholders.
“This may be more of a procedural clarification but the final approval is yet to come,” the source said.
Media reports on Saturday said that the market regulator has sought more details over some clauses in the share purchase deal between Vedanta Resources and UK’s Cairn Energy Plc.Vedanta group had sought SEBI’s approval in August 2010 for a R13,160-crore open offer for purchase of up to 20% stake from the public as part of the overall deal. JM Financial Services is the lead manager for this open offer.
The open offer, which was initially scheduled to begin on October 11 last year and close on October 30, has been stuck for a long-time given the delay in SEBI clearance.
The deal is also awaiting clearance from the government following differences over the issue of royalty payments on production from Cairn’s Rajasthan block. At present, ONGC, a 30% partner in the block, bears the entire royalty burden but wants this to be shared by all shareholders.