Sesa Goa gets only 8.1% in Cairn India
In a lukewarm response to its open offer, Indian iron-ore miner Sesa Goa Ltd has been able to acquire an 8.1% stake in Cairn India Ltd.business Updated: May 04, 2011 21:53 IST
In a lukewarm response to its open offer, Indian iron-ore miner Sesa Goa Ltd has been able to acquire an 8.1% stake in Cairn India Ltd.
In a statement released on late Tuesday, Sesa Goa said it will pay $1.2 billion (R5,580 crore) for the shares tendered through the open offer to minority shareholders. “Cairn India’s minority investors tendered 155 million shares for a total of $1.2 billion,” it said.
Sesa Goa, a group company of NRI billionaire Anil Agarwal promoted Vedanta Resources, was hoping to purchase anywhere up to 20% stake in Cairn India through this open offer.
The open offer to gain access to India’s biggest onshore oilfield began on April 11 and ended on April 30.
The tepid response to open offer by minority investors is being attributed to the reason that the offer price was slightly higher than the Cairn India’s current share market price. Sesa Goa offered Rs 355 per share.
The company has already purchased a 10.5% stake in Cairn India from Malaysian oil firm Petronas on April 19. Sesa Goa Ltd had paid Petronas R331 a share.
Vedanta Resources is also seeking to acquire a majority stake (51 to 60%) in Cairn Energy PLC’s Indian unit, Cairn India but the deal is yet been cleared by the government. Vedanta has offered Cairn Energy Rs 405 a share, including a non-compete fee of R50 and plans to spend as much as $9.6 billion to buy 51% to 60% of Cairn India share.