Vedanta Group firm Sesa Goa said its open offer for acquiring up to 20 per cent shares in Cairn India may not open on October 11 as planned earlier, as market regulator SEBI is yet to approve the offer.
The London listed Vedanta Resources is acquiring 40 to 51 per cent stake of UK's Cairn Energy Plc in the firm that owns the nation's largest on-land oilfield for $8.48 billion.
As part the acquisition, its group company Sesa Goa had on August 17 filed papers for making an open offer for additional 20 per cent shares of Cairn India.
"It is not likely that we will be able to launch the open offer for Cairn India by October 11. We are still awaiting SEBI clearances," Sesa Goa Managing Director, P K Mukherjee said after an analyst call conference on the group's H1 production result.
The deal, worth $9.6 billion including the open offer, is contingent upon Vedanta Group completing the open offer here.
It is also conditional upon shareholders of Cairn Energy Plc, which holds 62.38 per cent stake in Cairn India, and Vedanta Resources passing a resolution to approve the transaction on or before October 30.
More importantly, the deal is conditional upon required government consent being obtained.
While Mukherjee did not say when SEBI is likely to clear the open offer, industry sources said the market regulator may be waiting for the government to give its no-objection to the sale which is centered around the 6.5 billion barrel Rajasthan oilfie lds.
Oil Secretary, S Sundareshan had a few weeks ago written to the SEBI chairman stating that the deal was contingent upon government approval, which has not yet been accorded.
Mukherjee, however, said that the company has not been asked by SEBI to make additional disclosures on the deal.
"It is reported in the media that SEBI is awaiting some government clearances," he added.
The Supreme Court had earlier refused to restrain Vedanta Resources' subsidiary Sesa Goa from launching the open offer.
Sesa Goa is offering a price of Rs 355 per share, Rs 50 less than what