Vedanta Group not to raise open offer price

Vedanta Group not to raise open offer price

Group Chairman Anil Agarwal said the company is offering a lucrative deal for Cairn India shareholders, hence there shouldn't be a need to raise the open offer price.

Vedanta Group on Monday ruled out increasing the open offer price to minority shareholders of Cairn India, saying its current offer was "lucrative."

"There is no question (of increasing the open offer price). The price is final and it is a very lucrative offer," Chairman Anil Agarwal told reporters here.

Vedanta Resources is buying an up to 51 per cent stake from Cairn Energy Plc in its Indian arm, while subsidiary Sesa Goa has filed papers for an open offer for an additional 20 per cent stake.

Sesa Goa is offering a price of Rs 355 per share, Rs 50 less than what Vedanta is paying Cairn Energy for the majority stake.

The group is offering Cairn Energy Rs 405 a share, including a fee for not competing with it in India, Sri Lanka and Bhutan for the next three years.

"Non-compete fee (of Rs 50 per share) is very important for us because we do not want Cairn Energy Plc to work in our areas," Agarwal said.

Sesa Goa's open offer was to have opened on Monday, but has been delayed due to lack of approval from market regulator Securities and Exchange Board of India.

On the proposed open offer, Agarwal said Sebi has been asking "normal questions" on the $9.6-billion deal with Cairn Energy Plc and Vedanta is replying to them.

He said the market regulator normally gives approval in 45-60 days, a few days away for Vedanta.