Mumbai, Oct. 11: The 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 that is a very lucrative offer,” Vedanta Group Chairman Anil Agarwal told reporters here.
Vedanta Resources is buying 40-51 per cent stake from Cairn Energy Plc and its 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.
Whereas, the group is offering Cairn India's parent Cairn Energy Rs 405 a share, which includes 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 Monday, but has been delayed due to lack of approval from market regulator Sebi.
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 Sebi normally gives approval in 45-60 days and he expects the approval to come “in a few days.”