London-based Vedanta Resources has received approval from the Securities and Exchange Board of India (Sebi) to make an open offer for 20 per cent in iron ore exporter Sesa Goa.
Earlier this year, Vedanta had acquired 51 per cent in Sesa Goa held by Japanese mining major, Mitsui, for $981 million, at an offer price of Rs 2,036 per share.
Confirming the development, Vedanta Resources Director, Finance, Tarun Jain confirmed to Hindustan Times that the company has received Sebi approval for the open offer. “We have received the approval and will come out with the offer at a suitable time,” Jain said.
According to Indian takeover guidelines, the acquirer firm that is buying over 15 per cent stake in an Indian firm, needs to make an open offer to public shareholders. Vedanta acquired a 51 per cent controlling stake in Sesa Goa from Mitsui. To clinch the deal, Vedanta acquired 100 per cent of Finsider International Ltd, UK, which owns Mitsui’s 51 per cent stake in Sesa Goa.
Though Vedanta Chairman Anil Agarwal had said soon after the takeover announcement that the company would make an open offer soon, Sebi did not clear the proposal due to a pending case against Mitsuit management in the Supreme Court.
Days after Vedanta’s announcement, Harinarayan Bajaj, a broker at the Bombay Stock Exchange (BSE), filed a petition in the Supreme Court. The petitioner contended that Mitsui’s acquisition of Finsider, which held 51 per cent stake in Sesa Goa, in October 1996 violated Sebi norms.